Non-life insurance premium witnessed a rise of 2.7 per cent for November 2020 as compared to November 2019 driven primarily by health insurance. As per the CARE Ratings report research, the November 2020 monthly numbers reversed with the Year-To-Date numbers (YTD).
For the YTD November 2020-21, the fire segment rose 31.2 per cent on back of increase in reinsurance rates by GIC Re. However, the growth is still lower than 45.7 per cent growth witnessed in November financial year 2020.
Further the health segment grew 17.6 per cent in YTD November 2020-21 as compared to 12.5 per cent growth witnessed in YTD November 2020-21. This trend also indicates that there has been an increase in the awareness of health insurance which augmented the growth.
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“Retail health premium has grown at a much faster rate of 42.7 per cent compared to the 13.5 per cent growth in group business and a fall of 32.6 per cent and 75.4 per cent in government schemes and overseas travel insurance respectively,” notes report.
On the flipside, the motor insurance segment witnessed a decline on back of muted growth especially in the auto sales that impacted the motor insurance segment. In earlier months, due to the lockdown, segments except fire, engineering, health, aviation and liability witnessed decline in their premium numbers.
As per agency, the non-life insurance business is expected to grow in the single digits for the year.
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