With double-digit growth back, the general insurance industry has set a target of crossing Rs1 trillion mark in annual premium income this fiscal, up from Rs84,715 crore in 2014-15. The current fiscal got off to a good start with the industry netting Rs9,400 crore in collective premium income in April this year, up by 12 per cent over Rs8,422 crore in April 2014, according to the General Insurance Council data. The industry consists of four state-owned, 17 private, five standalone health insurers and two specialised insurers.
The general insurance industry had plunged to single digit growth of 9.3 per cent at Rs84,715 crore in 2014-15 from Rs77,540 crore in 2013-14. FY15 growth was the lowest in past three years. “I do hope that the industry will close the annual premium income in the current fiscal by crossing Rs1,00,000 crore mark,” General Insurance Council secretary general R Chandrasekaran said to news agency. “April is the month when most businesses get renewed. Due to hike in third-party motor premium and increase in fire and property premia, corrections are taking place in premium prices now," he said, adding ‘the ongoing Pradhan Mantri Jan Dhan Yojana will also help increase premium collection.’
The four state-owned general insurers mobilised around Rs4,940 crore in April 2015, up 10.5 per cent from the year-ago period, while the 17 private sector players grew their premium by almost 12 per cent to Rs4,073 crore in the same period. The five standalone health insurers saw their total premium increase by a whopping 50 per cent to Rs255 crore in April 2015 against Rs72 crore in the same month of previous year.
“With economic activity picking up with stalled projects getting back on stream as well as new projects coming up, I do hope that the current fiscal will be a bright year for the industry and we will be able to achieve Rs1,00,000 crore during the current fiscal,” Oriental Insurance Company chairman and managing director AK Saxena said.
New India Assurance chairman and managing director G Srinivasan also sounded sanguine about growth saying, “I do see 14-15 per cent growth in the current fiscal. The growth drivers are likely to be the mandatory third party motor premium due to their revised rates by the Irda and expected higher premia in property and fire lines.”
United India Insurance, which had closed 2014-15 with a total premium income of Rs10,692 crore, is looking at achieving a growth of more than 12 per cent at Rs11,800 crore during the current fiscal. “I also hope that the industry will be able to cross Rs1,00,000 crore during the current fiscal which will be driven by health and motor insurance.