General Insurers Gross Premium in June Rises 20%

General Insurance companies in India continue to post positive growth at 20.3% (year-on-year) in gross direct premium in June. Data from General Insurance Council shows private players have continued to see higher growth compared to public sector insurance companies.

In June, general insurance industry saw gross premium income at 8,522.22 Crore against 7,082.57 Crore in June last year. While private insurers registered gross premium income at 3,627.51 Crore up by 30.6% compared to last year. While public sector insurance companies saw growth of 13.3% at 4,374.54 Crore in June, 2016.

The general insurance sector in the last few months has seen sustained growth and higher participation from private players as against public sector insurers. “Growth by private insurers might be due to their low base compared to public sector insurance companies. However, private sector insurers are gaining foothold in the industry. They are already leading with high market share in motor and fire insurance. But some of the big corporate continue to be clients of public sector insurance companies,” said a top insurance player.

In the motor insurance segment, gross direct premium income underwritten by the non-life insurers up to June was Rs. 11,452.64 Crore with Rs. 6,108.67 Crore for private sector and Rs. 5,343.97 Crore for public sector companies.

Apart from general insurance, stand-alone health insurance companies also saw surge in their premium income by 30.6% in June.

“Stand-alone health insurance companies have started to see pick-up in their business, being just a health insurers has also benefited such players. with growing awareness and importance of health care, we hope this segment will continue to see strong growth,” said an official.