Kathmandu: Market research has forecasted that India’s general insurance business is expected to achieve 7 to 9 percent growth in gross direct premium income(GDPI) during fiscal year 2022.
As per the report made public by one of the credit rating agency ICRA the growth will be achieved within the current fiscal year ending 31 March 2022.
The major reasons behind the expected growth is due to the increased premium earning from the health and uptick in motor segment.
The general insurance market saw its growth rate slow to 4 percent with GDPI reaching NPR 2.95tn (INR 1.85tn) in FY2021. The GDPI was NPR2.85tn in FY2020. The growth over year was affected by the increased claim due to coronavirus pandemic. In FY2019, the non life industry witnessed a growth of 14 percent.
The report summary mention that though the industry witnessed some percentage of growth, the public sector insurance companies suffered decline in premium earning due to poor adaptation of digital technology as compared to the private sector. The private sector, reported an 8% YoY increase in GDPI to NPR1.81tn in FY2021.
Public-sector insurers are expected to report marginal GDPI growth of 4-5% in FY2022.
Despite underwriting loss, the non life industry is expected to maintain the growth with the earnings from their investment. As per the report, the performance of 17 including 4 public sector general insurance companies were included in the research. Thes companies represent 90 percent of the industry-wide GDPI during the 9 month period of FY21.