 "The insurance sector is at a critical juncture. Despite impressive growth in premium income – from Rs 1 trillion in FY05 to more than Rs 6.7 trillion in FY24 – the sector has yet to fully realise its potential in terms of broader penetration and impr")
Net incurred claims to net earned premium (claims ratio) of non-life insurance industry stood at 82.52 per cent during 2023-24 as against 82.95 per cent in the preceding fiscal year, as per the Irdai's annual report.
According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (Irdai), during 2023-24, the non-life insurance industry underwrote a total direct premium of Rs 2.90 trillion in India registering a growth of 12.76 per cent from previous year.
The contribution of public sector general insurers increased 8.88 per cent from Rs 82,891 crore in 2022-23 to Rs 90,252 crore in 2023-24.
Private sector insurers, including standalone health insurers, have underwritten Rs 1.88 trillion as against Rs 1.58 trillion in 2022-23.
The aggregate profit of the non-life insurance sector was Rs 10,119 crore as against a net loss of Rs 2,566 crore in 2022-23.
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During 2023-24, the aggregate net incurred claims saw a 15.39 per cent increase to Rs 1.72 trillion from Rs 1.49 trillion.
"The incurred claims ratio (net incurred claims to net earned premium) of the non-life insurance industry was 82.52 per cent during 2023-24 as against 82.95 per cent of the previous year," the report said.
The incurred claims ratio for public sector insurers was 97.23 per cent for 2023-24 as against the previous year's incurred claims ratio of 99.02 per cent.
The incurred claims ratio for private sector general insurers, standalone health insurers and specialised insurers were at 76.49 per cent, 63.63 per cent, and 66.58 per cent, respectively, for 2023-24 as compared to the previous year's ratio of 75.13 per cent, 61.44 per cent and 73.71 per cent, respectively.
The report also said that the life insurance industry paid total benefits of Rs 5.77 trillion in 2023-24, constituting 70.22 per cent of the net premium.
The benefits paid on account of surrenders/withdrawals increased 15.29 per cent to Rs 2.29 trillion in 2023-24 of which public sector life insurer accounted for 58.36 per cent.
During 2023-24, a total of 18 life insurance companies reported profits. Profits of the life insurance industry grew 10.79 per cent in 2023-24 with profit after tax (PAT) of Rs 47,407 crore as against Rs 42,788 crore in 2022-23.
Public sector life insurers reported an 11.75 per cent increase in profits while private sector life insurers reported a rise of 5.32 per cent in profit in 2023-24.
Irdai said in 2023-24, the country's insurance penetration was at 3.7 per cent as compared to 4 per cent in 2022-23.
The insurance penetration for life insurance industry marginally declined from 3 per cent in the previous year to 2.8 per cent during 2023-24.
The penetration with respect to non-life insurance industry remained the same at 1 per cent during 2023-24 as in 2022-23.
There were 26 life insurers, 25 general insurers, eight standalone health insurers, 12 reinsurers and foreign reinsurance branches, and two specialised insurers, registered as on March 31, 2024.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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