Non-Life Insurance Sector Sees Growth In Premiums And Improved Claims Ratio In 2023-24: IRDAI
Public sector general insurers saw an 8.88% increase in their contribution, rising from Rs 82,891 crore in 2022-23 to Rs 90,252 crore in 2023-24.
Source: Unsplash
The net incurred claims to net earned premium ratio for the non-life insurance industry stood at 82.52% in 2023-24, slightly down from 82.95% in the previous fiscal year, according to the IRDAI's annual report.
The Insurance Regulatory and Development Authority of India’s Annual Report for 2023-24 reveals that the non-life insurance sector in India underwrote a total direct premium of Rs 2.90 lakh crore, reflecting a growth of 12.76% compared to the previous year.
Public sector general insurers saw an 8.88% increase in their contribution, rising from Rs 82,891 crore in 2022-23 to Rs 90,252 crore in 2023-24.
Private sector insurers, including standalone health insurers, underwrote Rs 1.88 lakh crore, up from Rs 1.58 lakh crore in 2022-23.
The sector posted a total profit of Rs 10,119 crore in 2023-24, reversing a net loss of Rs 2,566 crore in the previous year.
In terms of net incurred claims, there was a 15.39% rise, reaching Rs 1.72 lakh crore in 2023-24, compared to Rs 1.49 lakh crore in 2022-23.
"The incurred claims ratio (net incurred claims to net earned premium) of the non-life insurance industry was 82.52% during 2023-24 as against 82.95% of the previous year," the report said.
The incurred claims ratio for public sector insurers was 97.23% in 2023-24, an improvement from 99.02% in the previous year.
For private sector general insurers, standalone health insurers, and specialised insurers, the incurred claims ratios were 76.49%, 63.63%, and 66.58%, respectively, in 2023-24, compared to 75.13%, 61.44%, and 73.71% in the previous year.
The report also highlighted that the life insurance industry paid out total benefits of Rs 5.77 lakh crore in 2023-24, which represented 70.22% of the net premium.
The benefits paid due to surrenders and withdrawals rose by 15.29%, reaching Rs 2.29 lakh crore in 2023-24, with public sector life insurers accounting for 58.36% of this amount.
In 2023-24, 18 life insurance companies reported profits, with the industry's total profits increasing by 10.79%, reaching Rs 47,407 crore, up from Rs 42,788 crore in 2022-23. Public sector life insurers saw an 11.75% growth in profits, while private sector life insurers reported a 5.32% increase in profits.
IRDAI said in 2023-24, the country's insurance penetration was at 3.7% as compared to 4% in 2022-23. The insurance penetration for the life insurance industry marginally declined from 3% in the previous year to 2.8% during 2023-24.
The penetration with respect to the non-life insurance industry remained the same at 1% during 2023-24 as in 2022-23. There were 26 life insurers, 25 general insurers, eight standalone health insurers, 12 reinsurers and foreign reinsurance branches, and two specialised insurers registered as of March 31, 2024.
