Non-life insurance premiums surged by 16%: GIC

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Non-life insurance premiums refer to the payments made by policyholders to non-life insurance companies in exchange for coverage against risks such as accidents, property damage, liability, and other non-life-related events. These premiums contribute to the overall revenue of non-life insurance companies and enable them to provide financial protection to their policyholders against various unforeseen events.

According to data released by the General Insurance Council, non-life insurers experienced a significant year-on-year growth of nearly 16% in gross direct premium underwritten in April 2024. This shows  non-life insurance companies saw a substantial increase in the total premiums collected directly from policyholders during that period compared to April of the previous year.

In April, the Gross Direct Premium Underwritten by non-life insurers amounted to Rs. 29,561.82 crore, reflecting a growth of 16.24% compared to Rs. 25,431.24 crore recorded in April 2023. This indicates a significant increase in the total premiums collected directly from policyholders by non-life insurance companies during April 2024 compared to the same month in the previous year.

The premium of general insurers increased by 15.30% year-on-year (YoY) to reach Rs. 26,918.86 crore. Among general insurers, those in the public sector experienced a growth of 7.74 percent in premium, reaching Rs. 210,345.04 crore. On the other hand, their private sector counterparts saw a more significant improvement of 20.58 percent, reaching Rs. 16,573.82 crore. This data reflects that both public and private sector general insurers witnessed growth in premiums, with private insurers showing a notably higher rate of improvement compared to their public sector counterparts.

The leading player in the industry, The New India Assurance Company, observed a nearly 3.93 % year-on-year (YoY) increase in premiums, reaching Rs. 252,59.01 crore.

Premiums of prominent private sector players such as ICICI Lombard General Insurance surged by 22.65 percent year-on-year (YoY) to Rs. 33,66.01 crore, while Bajaj Allianz General Insurance witnessed a substantial increase of 45.42 percent, reaching Rs. 22,388.57 crore during the same period.