Standalone health insurers continue to outpace non-life firms in India

Recent industry data for November reveals that standalone health insurers in India have played a pivotal role in propelling growth within the non-life insurance sector.

The General Insurance Council's flash figures show that the industry accrued a total premium of Rs 1,88,247 crore in the first eight months up to November 2023. This represents a 13.8% increase compared to Rs 1,65,359 crore in the same period the previous year.

A report from The Times of India revealed that health insurers reported a substantial rise, with a total premium collection of Rs 19,585 crore, marking a 25% increase from Rs 15,625 crore in the first eight months of the fiscal year 2023. Excluding the contributions from health insurance companies, the non-life insurance industry's growth rate would stand at 12.6%.

While detailed segment-wide premium figures are pending, industry insiders suggest that about one-third of general insurers' premium revenue is derived from health insurance, which has seen an approximate 25% growth. Consequently, the overall contribution of health insurance to the sector is now estimated to be around 40%.

In absolute terms, Bajaj Allianz emerged as the top contributor to premium income this year, securing a total premium of Rs 14,115 crore compared to Rs 10,399 crore last year, an increase of 35%.

ICICI Lombard also saw a significant rise in premium income, reaching Rs 16,722 crore, which is an increase of Rs 2,325 crore or 16% over the initial eight months of FY23. Meanwhile, New India Assurance, the public sector entity with the largest premium book, experienced an 8% growth, reaching Rs 24,381 crore.

Other notable performers in the industry include Tata AIG, Oriental Insurance, Star Health & Allied, Go Digit, SBI General, HDFC Ergo, Cholamandalam, Care Health, and Reliance General, each adding over Rs 1,000 crore to their collections compared to last year.

However, public sector insurers have seen a dip in market share, now accounting for 31.5% of the industry's total premium, a decrease from 33% in the previous year.

Elsewhere in the country, tax inspectors in India conducted a search operation at the office of Aviva's life insurance unit located near New Delhi, which resulted in the seizure of various documents as part of an ongoing investigation into suspected tax evasion.

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