Growth Rates of the Indian General Insurance Industry

775 Words Feb 4th, 2018 3 Pages
Over the past five years, the Gross Premium Written by Indian general insurance industry reported a compounded annual growth rate (CAGR) of 18.1% in the financial year 2013. With high co-relation between the growth rates in General Insurance Premiums and the National GDP growth rates, we expect the industry growth rates to moderate in line with the slowdown in Indian GDP growth. Accordingly ICRA estimates the General Insurance Industry to grow at around 15% in FY14.
The Private Sector players have maintained a higher growth rate compared to their PSU peers and have seen a gradual increase in their market share to 47% in FY14 in comparison to 40% in FY08. We expect the trend to continue going forward with our forecast of relatively higher growth for Private Sector players.

Motor insurance constitutes the largest segment of general insurance business in India with a share of around 46% in FY13, followed by Health and Personal Accident segment with 26% share and Fire & Engineering segment with 14% share.
Notwithstanding the upward revision in the premium rates for third party insurance for Commercial Vehicles in the last few years, the growth in motor insurance volumes has moderated in line with slowdown in economic growth; accordingly outlook for this segment continues to remain weak…
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