India’s non-life insurers logged a jump in premiums for the four months through July on the back of rising health, motor and fire protection.
The country’s non-life insurance industry saw a 15.5% growth in premiums for the April-July period to INR646.1bn ($8.7bn), with companies selling more health cover in the wake of the COVID pandemic.
Insurers logged a 34.2% year-on-year jump in health premiums to INR246.06bn for the period under review, Mumbai-based CARE Ratings said in a 21 August note.
Meanwhile, motor insurance premiums were bolstered by recovering vehicle sales. Motor cover rose 4.8% year on year to INR178.10bn.
Numbers collated by the Society of Indian Automobile Manufacturers (SIAM) showed domestic sales of passenger vehicles, three-wheelers and commercial vehicles surged 44.7%, 40.5% and 61.6% respectively in July 2021, compared with July 2020.
Meanwhile fire cover increased 7% over the same period in the preceding year to INR95.48bn.
Crop insurance, however, was the only segment to see a fall in a list that includes marine, engineering and aviation cover. It dropped 12.4% year on year to INR42.21bn over the four-month period.
Analysts at CARE said anecdotal data suggested farmer enrolment had dropped following a government decision to make crop cover optional.
Another reason given for lower agricultural insurance was the mismatch between digital records and land ownership claims made by farmers, as discrepancies prevent growers from taking out crop protection.
“The non-life industry continued its fiscal 2021-22 journey on a strong note. The year-to-date July growth continued to be driven by the private sector, which grew at a faster pace compared to the public sector," CARE added.
“Non-life premiums are expected to be driven by a continued uptick in the health segment, the motor insurance segment reporting a growth in premiums, albeit on a lower base, and with enhanced digital solutions complemented by offline offerings."