Non-Life Insurance Industry's Resilient Growth Amid Economic Shifts

The non-life insurance industry in India witnessed significant growth in 2023-24, with the total direct premium reaching Rs 2.90 lakh crore, a 12.76% increase from the previous year. Public sector insurers' contribution rose by 8.88%, while the private sector, including standalone health insurers, grew by 19%. The aggregate profit of the non-life sector surged to Rs 10,119 crore, reversing a prior net loss.

The non-life insurance sector in India experienced notable growth during the fiscal year 2023-24, as reported by the Insurance Regulatory and Development Authority of India (Irdai). The industry underwrote a total direct premium of Rs 2.90 lakh crore, marking a 12.76% growth compared to the previous fiscal year.

Public sector general insurers increased their contributions by 8.88%, while the private sector, including standalone health insurers, saw their underwritten premiums rise to Rs 1.88 lakh crore from Rs 1.58 lakh crore in 2022-23. This growth translated to an aggregate profit of Rs 10,119 crore, a significant turnaround from a net loss of Rs 2,566 crore in the preceding year.

The incurred claims ratio of the non-life insurance industry showed a slight improvement, standing at 82.52% for 2023-24. While public sector insurers reported a high claims ratio of 97.23%, private sector general insurers maintained their profitability with a ratio of 76.49%. Such developments reflect resilience within the sector amid broader economic changes.

(With inputs from agencies.)