The Covid-19 has been an eye-opener at many levels. One of which includes the heightening the level of awareness amongst the individuals about the importance of health insurance.
The non-life insurance market has continued to prosper well, with June 2021 monthly figures reporting a 7% increase, maintaining the pattern seen in prior months notes the Care Ratings. Non-life insurance premiums increased to Rs 14,810.2 crores in June 2021, up from Rs 13,842.2 crores in June 2020. The growth was driven on the back of the health and motor segments.
In Q1FY22, the majority of segments reported an increase in premiums, compared to the previous year, when the majority of segments recorded a decrease in premiums.
In Q1FY22, the fire segment grew moderately only by 4.2%, compared to the 33.7% rise in Q1FY21, as rates normalised in the current rate following GIC Re’s increase in reinsurance prices last year. The rate increase augmented the share of the fire segment by nearly 500 basis points in Q1FY21 as compared to Q1FY20.
In Q1FY22, the health segment grew by 30.9%, much greater than the 7.4% growth in Q1FY21, which was impacted by a statewide lockdown. In Q1FY22, standalone health insurers premiums grew faster than the industry average. The pandemic has boosted further increases in health insurance costs.
The motor insurance category increased little in Q2FY21, following a double-digit decline in Q1FY21. The rise is due to the increased registrations in June 2021. However, the economy’s sluggish development and overall reduced auto activity continue to have an effect on the motor insurance company.
The non-life business has continued its upward trajectory in FY22. The private sector continues to drive Q1FY22 growth, growing at a far quicker rate (17.6% in Q1FY22) than the governmental sector (an increase of 9.1% in Q1FY22).
As per the Care Ratings, Non-life premiums are likely to continue to rise as a result of the sustained growth in the health category. Additionally, increased digital solutions complemented by offline products are projected to promote non-life firms’ premium development. Meanwhile, the loss ratio may increase as a result of the revival in covid claims, affecting the financials.
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Some joint life insurance plans offer fixed monthly payments to the spouse in case of the death of the primary insured
You’re not alone if you’re in this dilemma. It’s certainly a prudent financial decision to pre-pay the home loan at regular intervals.
The logical question then is why is there an insurance of deposits up to Rs 5 lakhs if all the savings are safe?
In a joint term insurance plan, not many insurers provide add-on covers along with a primary joint life insurance plan