Page 33 - The Insurance Times January 2022

Global non-life premiums in 2020, by line of private sector health insurance companies registered a jump
business, USD billions of 66.6% in their gross premium at Rs 1,406.64 crore (US$
191.84 million) in May 2021, as against Rs. 844.13 crore
(US$ 115.12 million) earlier. In March 2021, health insurance
companies in the non-life insurance sector increased by 41%,
driven by rising demand for health insurance products amid
COVID-19 surge.

It was a peculiar year for the general insurers as the motor
segment, which is the biggest portfolio in a general
insurance companies' book, saw a huge contraction in the
initial months of the pandemic due to the strict lockdown in
place but has since slowly recovered as the economy opened
up. On the other hand, health insurance premiums have
seen a huge uptick as demand for health products, especially
retail ones', surged since the onset of the pandemic. Crop
Transition over the next decade insurance, on the other hand, remains a challenge for the
The rapid transformation during the pandemic has fuelled industry, going forward.
demand for adequate insurance protection for emerging
risks such as cyber attacks. The health crisis has also re-
emphasised the need for life insurance. These give rise to
the potential to accelerate reinsurance growth and
encourage reinsurers to manage comprehensive risk
assessment to determine policy coverage, rates and
premiums. The increased frequency and severity of natural
catastrophes due to climate change highlight the greater
role of Asian reinsurers in bridging the region's protection
gap between the economic losses brought about by natural
disasters and insured losses. The recent amendment to the General Insurance Business
(Nationalisation) Act, 1972, that allows the central
Ten years later, post 2030, the insurance industry would government to hold a stake of less than 51% in state-owned
have entirely transitioned to modernized, customer-centric insurance companies, is seen as necessary to keep the three
processes. Prescriptive algorithms can be forecasted to be unlisted public sector general insurers afloat and prevent a
used by agents or digital channels to actively influence crisis in the sector.
customers' purchases. The implementation of RPA and
The amendment paves the way for a strategic sale in these
conversational AI will reduce a majority of manual efforts
undertaken, thereby actively optimizing cost and resolution insurers to the private sector. However, while the
time. The next decade is set to see the use of algorithms
for financial planning along with human feedback and
advice, with advanced algorithms that match the customer
to their most suited channel and advisor.

Indian non-life insurance market
In India, gross premiums written of non-life insurers reached
US$ 26.52 billion in FY21 (between April 2020 and March
2021), from US$ 26.49 billion in FY20 (between April 2019
and March 2020), driven by strong growth from general
insurance companies. Gross direct premium of non-life
insurance companies rose 11.4% on a yearly basis to Rs.
12,316.50 crore (1.6 billion) in May 2021. Six standalone

The Insurance Times, January 2022 33