MUMBAI: India’s insurance coverage penetration, which is measured as a ratio of annual premium to GDP, dipped in FY24 for the second yr in a row after touching a peak of 4.2% within the wake of Covid.
According to regulator Irdai’s annual report launched on Monday, India’s insurance coverage penetration was 3.7% in FY24 in contrast to 4% in 2022-23. The insurance coverage penetration for the life insurance coverage trade marginally declined from 3% within the earlier yr to 2.8% in 2023-24. The penetration for the non-life insurance coverage trade remained unchanged at 1% throughout 2023-24, as in 2022-23.
While the share of insurance coverage to GDP declined, there was a modest enhance in per capita premium (insurance coverage density) from $92 in FY22 to $95 in FY23.
India’s expertise goes in opposition to the worldwide pattern, the place insurance coverage penetration in each life and non-life segments has risen, with the worldwide common at 7% in 2023 versus 6.8% in 2022.
During 2023-24, the life insurance coverage trade recorded a premium earnings of Rs 8.3 lakh crore, registering a 6.1% development which was slower than the rise in GDP. Private sector life insurers clocked a development of 15.1% in premium, whereas the general public sector life insurer recorded a development of 0.2%.
The life insurance coverage trade paid complete advantages of Rs 5.8 lakh crore in 2023-24, constituting 70.2% of the web premium. Benefits paid on account of surrenders/withdrawals elevated by 15.3% to Rs 2.3 lakh crore in 2023-24, of which the general public sector life insurer accounted for 58.4%.
During 2023-24, the non-life insurance coverage trade underwrote a complete direct premium of Rs 2.9 lakh crore in India, registering a development of 12.8% over the earlier yr. A good portion of the rise was as a result of of people paying the next premium for medical insurance coupled with development in motor insurance coverage. During 2023-24, basic and well being insurers settled 2.7 crore medical insurance claims and paid Rs 83,493 crore in the direction of declare settlements.
In FY24, basic insurers, together with specialised ones, paid complete claims (excluding medical insurance) amounting to Rs 1,01,050 crore. Of this, non-public basic insurers paid 55% (Rs 55,524 crore), PSU basic insurers paid 32% (Rs 32,131 crore), and specialised ones paid Rs 13,396 crore (13%).
As of March 31, 2024, investments made by the insurance coverage trade stood at Rs 67.6 lakh crore, in contrast to Rs 60 lakh crore as of March 31, 2023, registering a rise of 12.6%. The share of life insurers stood at 91.1%, whereas basic insurers (together with specialised and standalone well being insurers) constituted 7%, and reinsurers, together with branches of international reinsurers, made up 1.9%. The share of PSUs stood at 69.5%, and the non-public sector constituted 30.5% throughout the identical interval.
