Page 23 - The Insurance Times May 2025

Let's look at some of the parameters of Indian Insurance growth is the increase in insurance premiums after adjust-
industry. ing for inflation. It measures the change in premiums ad-
justed for the effects of price increases over time, offering
Analysis of Impact of COVID on Indian a more reliable measure of the insurance market's expan-
sion. The effect of hight inflation is shown in the year 2023
Insurance Sector post ongoing two geo-political war.
Premium Income
The analysis of the Indian insurance industry is performed Similarly, the contribution of premium within the gross do-
for the period 2019-20 to 2023-24 that covers the peak of mestic product (GDP) also declined from 2021-22 as shown
the COVID during 2020 and 2021. The graph-1 represent in graph 3 below. In fact, the rise in the insurance penetra-
the premium income for life, non-life and total industry. tion in the year 2021-22 at the peak of COVID is due to a
There is a consistent growth in the premium income over fall in the GDP rather than increase in premium income. The
this period. The growth in premium income to both life and insurance penetration started falling after 2021-22 because
non-life industries suggest no impact of COVID. premium income growth could not keep pace with the
growth of GDP.
Graph-1
Graph 3

Source: IRDA Annual Report

Over the last five years, uncertainty has been at the high- Source: IRDA Annual reports for respective years
est level. The adversities and inflation led to volatile growth
in real premiums in the Indian insurance market between Profit After Tax
2020 to 2023-shown in graph 2 below. Real premium
Graph 4 represents the profit after tax (PAT) for life, non-
Graph-2
Graph 4

Source: IRDA Annual reports for respective years Source: IRDA Annual reports for respective years

22 May 2025 The Insurance Times