The general insurance industry has wrapped up the fiscal year FY24 with a 13% growth rate. While this growth is slightly lower compared to the 16% achieved in the previous year, the industry has maintained a consistent double-digit growth trend over the past few years.

According to data from the General Insurance Council, the gross direct premium for all non-life insurance companies in 2023-24 increased to ₹2,89,731 crore from ₹2,56,894 crore in 2022-23.

Specifically, the gross premium of 25 non-life insurance companies grew by about 14% to reach ₹2,45,424 crore in FY24, up from ₹2,14,833 crore in FY23. Meanwhile, the five standalone health insurers saw a 26% growth in gross direct premium, reaching ₹33,116 crore compared to ₹26,244 crore.

On the other hand, two specialized insurers – Agriculture Insurance Co of India Ltd and ECGC – reported a 29% decline in their combined gross premium, which stood at ₹11,190 crore in FY24 as opposed to ₹15,817 crore in FY23.

The non-life industry’s growth continues to be predominantly driven by the health and motor insurance segments, although there was a slight dip in FY24 due to decreases in liability, crop insurance, and marine cargo. The fire and credit guarantee segments also reported subdued growth compared to the previous year, as per a recent report by CareEdge Ratings.

Key Highlights

The PSU player New India, a major player in the non-life segment, experienced a decline in market share to 12.78% in FY24 from 13.42% in FY23. Oriental Insurance Company Ltd saw its market share grow to 6.31% from 6.08%, while United India Insurance Company had a slight decline to 6.85% from 6.87%. National Insurance Company also reported a decrease in market share to 5.24% from 5.90%.

ICICI Lombard, the second-largest player in the non-life segment and the top player in the private segment, managed to increase its market share from 8.18% to 8.55%, supported by an 18% rise in premium. However, HDFC Ergo, the second major player in the private segment, saw its market share decline to 6.41% from 6.48%.

In the standalone health space, Star Health maintained its leading position with a gross premium income of ₹15,251 crore in FY24, marking an 18% increase from ₹12,952 crore in FY23. Star Health’s market share in the overall non-life segment rose to 5.26% from 5.04% in FY23. However, it saw a decrease in market share in the standalone health category from 49% in FY23 to 46% in FY24.

Looking ahead, CareEdge stated, “The Indian non-life insurance market is projected to grow at 13-15% in the medium term. Growth will primarily be driven by health and motor insurance segments, supported by increasing disposable income levels and expansion across other segments.”

Published on April 8, 2024