The Indian insurers have also rapidly developed their digital offerings during the pandemic, the report added.
Mohammed Ali Londe, Moody's Vice President and Senior Analyst, said: "Although the economic slowdown had had an adverse impact on the Indian insurers, with general insurance growth slowing to 2.5 per cent and life insurers' new business premiums falling by 1.7 per cent in the nine months till December 2020, we expect general insurance premium growth to remain in the positive territory due to persistently strong demand for health and protection coverage."
Over the longer term, the industry may benefit as the central government injects capital into publicly owned insurers, and as private insurers reinforce their solvency through a combination of raising of capital and M&A, the report said.
Moody's has said that India's real GDP may contract by 10.6 per cent in FY21.
"We expect general insurance premium growth to remain in positive territory. Persistently strong demand for health and protection coverage will support general and life insurance premiums," it said.
Health premiums rose 13.7 per cent in the fiscal's nine months up to December 2020, supporting general insurance premium growth.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.