Insurance premium growth rate falls 50% in 2017-18: Irdai data

Insurance premium growth rate falls 50% in 2017-18: Irdai data

Mumbai, Apr 22: Insurance premium growth saw a decline in 2017-18. According to the data released by the Insurance Regulatory and Development Authority of India (Irdai), the 34-odd general insurers have grown 16.9 per cent in FY18 in terms of gross direct premium collected, while life insurers’ premiums rose 10.8 per cent. In 2017-18, general insurers collected Rs 1,333.5 billion in premium revenue, compared to Rs 1,140.2 billion collected in 2016-17. Life insurers collected Rs 1,938.6 billion in premium revenue in 2017-18, against Rs 1,750.2 billion in 2016-17.
General insurers had posted a growth rate of 32 per cent in 2016-17, while for life insurers, the figure stood at 26.3 per cent. The data showed that premium growth in 2017-18 is nearly half of what was registered at the end of March 31, 2017. Gross direct premium revenue for standalone private health insurers rose to Rs 82.9 billion in 2017-18, from Rs 58.6 billion in 2016-17. The premium collection grew 41.6 per cent on a year-on-year basis for 2017-18. Public general insurance companies, including New India Assurance, United India Insurance, National Insurance Company and Oriental Insurance, have grown slower this financial year than in the previous one. During 2017-18, these companies experienced a premium growth of 12.8 per cent compared to a growth of 24.46 per cent during 2016-17.
New India Assurance’s premiums grew 25.85 per cent in 2016-17, and slowed down to 18.74 per cent in 2017-18. United India’s premium growth slowed to 7.7 per cent in 2017-18 from 26.53 per cent in 2016-17, while Oriental Insurance’s premium growth in 2016-17 was 29.79 per cent compared to 6.6 per cent in 2017-18.