Page 48 - Insurance Times December 2022

Other key insurtech companies in India eyeing a significant The key growth factors driving insurtech companies in India
market share include Paytm Insurance, ENSUREDIT, include the rising insurance awareness across Tier 2 cities
Onsurity, Plum, Riskcovry, RenewBuy among others.. and beyond, widespread use of women-specific insurance
products, and better SME participation.
Importance in the Indian FinTech space
Consumer inclination, improved reach & technology blend,
The Indian fintech market is one of the fastest-growing
emergence of the national health stack which has helped
globally, estimated to reach $1.3 trillion by 2025, growing
improve the penetration into the insurance sector, are
at a CAGR of 31%.
among other key factors, it added.
Among its key sub-sectors, lending tech is likely to account Moving forward, the industry is set to grow even more, on
for 47%, or $616 Billion, followed by insurtech at 26% ($339 the back of supportive initiatives and rising demand among
Bn) and digital payments at 16% ($208 Bn), stated a report new customer segments, according to a new report by the
by Inc42's while adding that India's Insurtech sector offers Boston Consulting Group and the India Insurtech Association.
a $339 Bn Market opportunity. (Source: The Economic Times)

Rs. 28,500 cr underwriting loss leads to premium hikes by general insurers
Covid-19 pandemic appears to have hit the final insurance coverage business’s efficiency. With a report underwriting lack
of Rs 28,500 crore in FY 2021-22, the Rs 2.23 lakh crore business with 31 gamers has been pushed into purple, resulting
in a hike in premium in lots of segments. The loss occurred regardless of insurers reporting a better funding earnings in
the course of the 12 months. The business reported underwriting losses of round Rs 19,400 crore within the earlier 12
months. “The high underwriting loss has led to a hike in premium by 5-10 per cent in many segments, especially health in
the last six months,” stated an insurance coverage official.
According to information obtainable from insurers, in FY 2021-22, a complete of virtually 18 lakh Covid claims have been
settled for an quantity of Rs 16,190 crore, virtually double of what was paid by way of variety of claims and quantity in FY
2020-21. Almost 1,17,000 claims amounting to Rs 1,163 crore have been repudiated or nonetheless pending for fee by
the final insurance coverage firms throughout FY 2021-22 and over 2,15,000 claims amounting to Rs 1,500 crore have
been rejected or pending with basic insurers within the final two years. “Many insurers burnt their fingers while settling
Covid claims,” stated an official.
Saddled with the massive total losses of three PSU basic insurers — Oriental Insurance (OIC), National Insurance Company
(OIC) and United India Insurance (UII) — the phase has slipped into internet losses of Rs 2,842 crore in FY 2021-22 as in
opposition to a internet profitability of Rs 3,869 crore throughout FY 2020-21. With a internet revenue of Rs 3,869 core,
the business had returned to black in 2020-21 after having registered internet losses of Rs 1,402 crore in 2019-20.
Underwriting is the method insurers use to find out the dangers of insuring a enterprise, well being of an individual or
enterprise. The insurance coverage firm determines whether or not a agency poses a suitable threat and calculates a
good value on your protection. The business has suffered working losses of Rs 1,148 crore in FY 2021-22 as in opposition
to an working revenue of Rs 6,616 crore in FY 2020-21. The phase had a complete funding earnings of Rs 32,286 crore,
up 11 per cent, in FY 2021-22.

Excluding Bajaj Allianz General Insurance, Care Health Insurance and state owned ECGC, the profitability of the remainder
of insurers for the business could be attributed to their funding earnings and never pure underwriting in 2021-22. On the
opposite hand, besides New India Assurance (NIA), the nation’s largest basic insurance coverage firm, which has ended
the 12 months with a Rs 164 crore of internet revenue, the remainder of the three basic insurers OIC, NIC and UII have
recorded heavy losses of Rs 3115 crore, Rs1674 crore and 2136 crore respectively in FY 2021-22.
OIC, NIC and UII have incurred losses, regardless of having giant funding earnings of Rs 2,296 crore, Rs 2,650 crore and
Rs 2790 crore respectively, because of big underwriting losses in FY 2021-22. NIA has the most important funding earnings
of Rs 6,665 crore whereas ICICI Lombard General Insurance (Rs 3,000 crore), Bajaj General Insurance Rs 1,760 crore,
HDFC Ergo General Insurance (Rs 1,279 core) are the highest three non-public sector basic insurers by way of funding
earnings.
Overall, 20 full-fledged non-public sector basic insurers, led by Bajaj Allianz General Insurance, have been capable of develop

42 December 2022 The Insurance Times