Page 32 - Insurance Times August 2020
P. 32

HOW THE GENERAL



         INSURANCE




         INDUSTRY COULD




         ROAR TO LIFE AFTER




         LOCKDOWN IS



         LIFTED








         T         here will be very muted growth, if at all, for the  specialist insurers) saw a 9.5% growth in gross premiums in


                   insurance industry in the first quarter of financial
                                                              FY2020 compared to the previous financial year. Listed New
                   year 2020-21, but the Covid-19 pandemic may
                                                              India Assurance was the largest company in the sector with
                   serve as an inflation point when Indians realize
                   the importance of insurance. The non-life  a premium volume of INR 267bn, growing by 11.7% over
                                                              FY2019. For the month of 2020 alone, when the pandemic
         insurance sector posted an 11.7% increase in premium  worsened, the combined GWP of non-life insurers (including
         income to INR 1.89tn ($24.7bn) in the year ended 31 March  specialized state owned insurers) declined by 10.7% to INR
         2020 (FY2020), compared to the previous financial year. In  157.85bn, compared to March 2019.
         comparison, total premiums increased by 14% in the non-
         life sector in the 11 months to February 2020.       General insurers reported a fall of 15.3% in premium
                                                              collection to INR 133.86bn in March 2020, whereas
         Among non-life insurers, standalone health insurers saw a  standalone private health insurers increased business by
         27% jump in gross direct premium to INR 144.1bn in FY2020,  4.3% to INR 18.07bn. Specialized state owned insurers,
         reflecting in part the increase in purchases of health  namely, Agriculture Insurance Company of India, recorded
         insurance products amidst the COVID-19 pandemic. Other  a surge premium collection of INR 5.91bn in March 2020.
         non-life insurers (excluding two government owned    Among the general insurers, state owned companies posted
                                                              a 13.9% decline in GWP to INR 67.08bn while private sector
                                About the author              general insurers saw business fall by 16.6% to INR 66.78bn
                                                              in March 2020.
                         Jagendra Kumar
                         Ex. CEO,                             The weak March 2020 performance is attributed to the
                         Pearl Insurance Brokers              lockdown announced by the government aimed at curbing
                         JAIPUR                               the spread of COVID-19. Bank branches which are a major

          32  The Insurance Times, August 2020
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