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.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
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.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
