New Delhi, July 16 : General insurance companies posted a 9.91 percent year-on-year (YoY) increase in gross written premium collection in the June quarter. Premium collection was at Rs 41,063.61 crore in the first quarter but saw a slump in growth due to poor auto sales.
Motor insurance is the largest business segment for general insurers. Since all motor vehicles running on Indian roads are required to have motor third party insurance, whenever sales of automobiles hit a slow lane this consequently impacts policy sales.
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Data from Insurance Regulatory and Development Authority of India (IRDAI) showed that the standalone health insurance companies had a higher rate of growth at 41.57 percent YoY growth at Rs 2,799.06 crore premium.
With respect to the listed entities, the country’s largest insurer New India Assurance collected gross premium of Rs 7,138.78 crore in the June quarter, showing a 13.62 percent YoY growth. ICICI Lombard General Insurance had a 7.6 percent YoY drop in its premium collection to Rs 3,486.87 crore in Q1.
On one hand, general insurers’ premium numbers have been dwindling, while on the other hand life insurers have seen a double-digit growth in premiums.
Life insurance companies clocked 65 percent year-on-year (YoY) growth in the first year premiums in Q1.
IRDAI data showed that life insurers collected new premiums of Rs 60,637.22 crore for the quarter ended June 30. And among them Life Insurance Corporation of India (LIC) posted an 81 percent YoY growth in new premiums at Rs 44,794.78 crore in Q1.
