The non-life insurance industry continued to show strong performance even as economic growth slows due to the second wave of the pandemic, CARE Ratings said in a report.
According to the rating agency, monthly figures for May 2021 show growth of 13.1%, continuing the trend seen in previous months. The non-life insurance premium reached Rs 12,316.5 crore for the month of May 2021 compared to Rs. 10,891.5 crore in May 2020. Growth is expected to have been driven by the low base effect ( national blockage in May 2020 vs localized blockages in May 2021), as well as by the continued growth of the health insurance segment.
âThe non-life industry continued its FY22 journey on a positive note. Growth in May 2021 continued to be driven by the private sector which grew at a much faster pace (16.8% growth in May 2021) compared to the public sector. (4.8% growth in May 2021). Non-life premiums are expected to be driven by the continued rise in the healthcare segment. In addition, improved digital solutions coupled with offline offerings are expected to contribute to premiums for non-life insurance companies. Meanwhile, the loss ratio could rise given the resurgence of covid claims, which would impact finances, âthe rating agency said.
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Article first published: Thursday June 10, 2021, 11:56 AM [IST]