Slowdown in auto industry casts shadow on motor insurance segment

In FY19, the motor insurance segment saw 9 per cent growth, with premium collection at Rs 64,000 crore against Rs 59,000 crore in FY18

The slowdown in the Indian auto industry has cast a shadow on the business of non-life insurers. The motor insurance segment — largest contributor to general insurers’ revenues — has seeing muted growth of late. Hopes of a recovery depend much on an improvement in customer sentiment, which could lead to revival in demand for new vehicles.

Premiums collected from the motor insurance segment contribute close to 38 per cent to the overall collection from various segments, for the non-life industry. In the June quarter, growth in the segment stood at around 4 per cent, with premium collection at Rs 15,724