How govt health business is driving general insurance industry growth
Key sectors within the industry have also shown resilience, says a Kotak Institutional Equities report
In July 2023, the general insurance (GI) industry experienced a surge in growth, accelerating to 20 per cent year-on-year. This boost was largely attributed to the government's involvement in the health business. Key sectors within the industry also showed resilience.
Retail health insurance grew by 18 per cent, motor insurance was up 15 per cent, and group health maintained a steady 19 per cent growth.
ICICI Lombard reported a 10-11 per cent growth in motor insurance segments among individual companies. This performance marks an improvement from the single-digit growth seen in the second half of the financial year 2023 but is still lagging behind the industry average.
Star Health saw a moderate 16 per cent growth in retail health, although it rebounded well in group health.
For the broader non-life insurance sector, a 13 per cent growth in premiums was noted in July 2023, contributing to a 17 per cent growth for the first four months of the financial year 2024.
The government's robust robust involvement was a significant factor in these numbers, causing monthly variations in growth, said a Kotak Institutional Equities report.
