Non-life insurers report marginal decline in October premium collections

This, despite good growth in premiums by standalone health insurers, aided by rise in demand for health plans in the country

Non-life insurers have reported a marginal year-on-year (YoY) decline in premiums earned in October, despite standalone health insurers posting a 32 per cent growth in premiums, aided by the rise in demand for health insurance.
 
Non-life insurers were in the red in September also, with premium collection slipping 4.41 per cent.
 
According to the data released by the Insurance Regulatory and Development Authority of India (Irdai), non-life insurers’ premium in October contracted 0.41 per cent to Rs 15,855 crore, compared to Rs 15,921.92 core in the corresponding period last year. But, in the first seven months of the current financial year (FY21), premiums earned grew 1 per cent to Rs 1.12 trillion.

 

General insurers, 25 in total, saw their premiums fall 4 per cent in October to Rs 14,158 crore and in the April-October period premiums earned by insurers dropped around 2 per cent to Rs 95,474 crore.
 
But, standalone health insurers witnessed excellent growth in premium collection, with premiums in October this year rising 32 per cent to Rs 1,403 crore. Similarly, the first seven months of FY21 have seen standalone health insurers witnessing 28.7 per cent growth in premiums at Rs 9,124 crore.
 
This is driven by the fact that demand for health insurance has been on the rise due to the Covid-19 pandemic. The regulator’s drive to nudge insurers to sell standardised health products has also helped, evident in the huge demand for the Corona Kavach and Corona Rakshak policies. More than 15 million lives have been covered against Covid-19. The Covid-specific products were launched on July 10.

 
The motor segment, however, has struggled due to the overlying economic conditions with muted sales of new vehicles in Q1. Though, it seems to have recovered from the lows in Q1. The festive season has seen good demand for new vehicles, especially in the affordable segment. And, many companies are seeing their motor insurance sales coming back.