According to an Indian Express
report, both life and non-life insurance segments saw robust growth in terms of premiums collected at least till the six-month period ended September 30 of FY20.
The general insurance industry in September grew by almost 40 per cent to Rs 19,047 crore. The public sector insurers have mopped up a premium of Rs 8,873 crore, up 43 per cent while the private sector companies have mobilised a premium of Rs 10,174 crore, up 37 per cent during September, the newspaper reported.
With a penetration level of just 0.9 per cent of GDP, the general insurance industry has multi-year growth headroom in India. Unlike life, general insurance is non-discretionary, making it virtually indispensable. But most contracts are annually renewable and switching costs remain low.
Analysts at HDFC Securities believe competitive forces will limit profitability of the motor-line and general insurers will be conservative in releasing reserves (only with better experience), reporting limited profit growth. They also risk regulatory action on commission payouts and third-party (TP) product pricing. The brokerage firm expects this to result in a tapering of growth for motor TP after the initial spurt.