MUMBAI, May 20: With double-digit growth back, the general insurance industry has set a target of crossing Rs 1 trillion mark in annual premium income this fiscal, up from Rs 84,715 crore in 2014-15.
The current fiscal got off to a good start with the industry netting Rs 9,400 crore in collective premium income in April this year, up by 12 per cent over Rs 8,422 crore in April 2014, according to the General Insurance Council data.
The industry consists of four state-owned, 17 private, five standalone health insurers and two specialised insurers.
The general insurance industry had plunged to single digit growth of 9.3 per cent at Rs 84,715 crore in 2014-15 from Rs 77,540 crore in 2013-14.
FY15 growth was the lowest in past three years.
“I do hope that the industry will close the annual premium income in the current fiscal by crossing Rs 1,00,000 crore mark,” General Insurance Council secretary general R Chandrasekaran told PTI.
“April is the month when most businesses get renewed. Due to hike in third-party motor premium and increase in fire and property premia, corrections are taking place in premium prices now,” he said, adding “the ongoing Pradhan Mantri Jan Dhan Yojana will also help increase premium collection.”
The four state-owned general insurers mobilised around Rs 4,940 crore in April 2015, up 10.5 per cent from the year-ago period, while the 17 private sector players grew their premium by almost 12 per cent to Rs 4,073 crore in the same period.
The five standalone health insurers saw their total premium increase by a whopping 50 per cent to Rs 255 crore in April 2015 against Rs 172 crore in the same month of previous year.
“With economic activity picking up with stalled projects getting back on stream as well as new projects coming up, I do hope that the current fiscal will be a bright year for the industry and we will be able to achieve Rs 1,00,000 crore during the current fiscal,” Oriental Insurance Company chairman and managing director A K Saxena said.
New India Assurance chairman and managing director G Srinivasan also sounded sanguine about growth saying, “I do see 14-15 per cent growth in the current fiscal. The growth drivers are likely to be the mandatory third party motor premium due to their revised rates by the Irda and expected higher premia in property and fire lines.” (PTI)
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