Page 28 - Insurance Times April 2022

working of the Indian Insurance Industry during last 3 Table I - Data on Investments and Investment
decades. Income over the years (Indian Non-Life

Insurance Industry)
The primary function of an insurer is to offer protection
(All the data in the table is taken from the Published Annual
against the diverse risks to which the customers are
Reports of Insurance Regulatory and Development Authority
exposed. Such protection takes the form of a financial relief of India (IRDAI) and General Insurance Corporation of India
to the affected customers. This protection mechanism is (GIC) (for earlier years). There could be some minor
such that in the process, it generates and leaves sizeable variations due to inclusion or non-inclusion of data of
amount of funds in the custody of the insurers. specialised insurers like health insurers, Agricultural
Insurance Corporation of India (AIC), Export Credit
Two factors contribute to this fund generation. First, the Guarantee Corporation of India (ECGC) and reinsurers.
collection of premium in advance, supported in India, by However it should not make any material difference for the
Section 64 VB (which prohibits assumption of risks before analysis or conclusions derived from such analysis.)
the collection of premium) of The Insurance Act 1938.
Second, the time element involved in assumption of risks and (Rupees in Crores)
the occurence of events giving rise to claims further Year Premium U/W Investment Investment
accentuated by the additional time involved in settlement Gross (Net) Profit Income Assets
(payment) of claims. Ideally claims should be settled as soon (Yield)
as the losses occur. 1973 184 (222) 18 21 (6.47%)
1980 469 (458) 05 87 (9.81%)
But practically it takes time, particularly in case of liability
1990 2279 (2186) -111 449
claims (Non-life Insurance) which take very long time
2000 9982 (9364) -1215 2392 (11.38%)
before being settled. The relevant information on the funds
2010 36888 (xxxxx) -5901 7688 66372
at the disposal of Indian insurers is presented in the tables
below. 2020 192192(xxxxxx) -23720 28606 362656

Table II - Company wise Data on Underwriting Results, Investments and Investment Income of

Indian Non-life Insurers for the year 2019-20
Data taken from the annual reports of the companies for the year 2019-20. The table excludes Export Credit Guarantee
Corporation of India (ECGC) and Agricultural Insurance Corporation of Indias (AIC) and few insurers due to in-accessibility
of their annual reports. The non inclusion does not make any material difference for he analysis or the conclusions derived
from such analysis.

Rupees in Crs
Company Gross U/W Investment Investment Profit or Interest investment Profit of loss
Direct Profit Income Assets loss on Dividend assets/ on sale of
Premium sale of and rent Premium Investments /
investments Investment
Income
ACKO General Ins. Ltd. 373.07 -214.63 23.93 434.01 6.99 16.94 1.16 0.29
Aditya Birla Health Ins. Co. Ltd. 972.04 -283.85 48.86 871.21 4.76 44.09 0.90 0.10
Bajaj Allianz General Ins. Co. Ltd. 12779.77 -57.00 1260.00 18900.00 149.00 1111.00 1.48 0.12
Chola MS General Ins. Co. Ltd. 4398.30 -156.07 755.72 9119.99 177.95 577.77 2.07 0.24
Edelweis General Ins. Co. Ltd. 158.6 -102.94 17.37 307.62 3.03 14.34 1.94 0.17
Future Generali India Ins. Co. Ltd. 3417.49 28.78 353.41 4539.52 30.16 323.25 1.33 0.09
Go Digit General Ins. Ltd. 1767.86 -419.13 177.86 3549.81 6.49 171.36 2.01 0.04

28 The Insurance Times, April 2022