Non-Life Insurance premium grew by 13% in February 2024

Growth of non-life insurance: India's non-life insurance industry showcased robust growth, with premiums soaring to Rs 22,378.4 crore, marking a significant rebound with a double-digit surge of 12.6 per cent in February 2024, a report by CareEdge showed. Although slightly slower compared to the remarkable 20.0 per cent growth observed in February 2023, this positive trend highlights the sector's resilience, fueled predominantly by the Health and Motor OD segments.

Throughout the year-to-date (YTDFY24) period, the industry sustained its upward trajectory, surpassing the previous year's performance in February. However, subdued growth rates were observed in segments such as liability, crop insurance, and marine cargo, offset by continued strength in health and motor insurance.

Public sector general insurers recorded an increase of 10.3 per cent in February 2024, outpacing the growth rate of 7.8 per cent observed in the same period last year. While YTDFY24 growth remained positive, it showed a slight moderation compared to the preceding year. In contrast, private sector general insurers reported a growth rate of 12.3 per cent for February 2024, down from the robust 20.3 per cent recorded in February 2023, with group health and motor insurance driving this expansion.

However, specialised insurers faced challenges, experiencing a decrease of 6.7 per cent in February 2024, following a remarkable surge of 111.1 per cent in February 2023. This decline persisted in YTDFY24, primarily due to reduced crop insurance premiums. Standalone Private Health Insurers (SAHI) continued to maintain growth momentum, reaching Rs 3,000.2 crore in February 2024, although showing a sequential decrease of 9.0 per cent from January 2024.

Private non-life insurance companies continued to strengthen their market share, reaching 65 per cent for YTDFY24, underscoring the ongoing growth disparity between the public and private sectors.

Health Insurance

Health insurance premiums remained a key growth driver, with the segment's market share expanding from 33.2 per cent for YTDFY22 to 37.5 per cent for YTD FY24. While growth rates moderated compared to the previous year, initiatives such as Ayushman Bharat contributed to the expansion of the Group Health segment. Additionally, the overseas medical segment rebounded to pre-pandemic levels as international travel resumed.