Page 8 - Insurance Times April 2024

more teams and the record bids for top ing general, standalone health and underinsured and rising medical infla-
players," said Abizar Bohra, head of specialised PSU insurance companies, tion. Meanwhile, rising vehicle sales
sports and entertainment, Global Insur- have witnessed a 13.1 per cent growth support the growth in motor insur-
ance Brokers. in premiums to Rs 2.63 trillion in the ance. According to the data, retail
first 11 months of FY24, up from Rs health and group health premiums
The cover is primarily for event cancel-
2.32 trillion in the year-ago period. The have increased by 19.22 per cent and
lation, which results in a loss for all
stakeholders. "In India, event cancel- growth was backed by the rise in health 20.56 per cent, respectively so far in
lation happens largely due to adverse and motor insurance premiums. FY24.
weather. Last year, the weather was According to the data released by the
good in major parts of the country. As general insurance council, health insur- Zurich Insurance to buy
a result, there were no large claims," ance premiums have grown by 20.39 70% Kotak General stake
said Bohra. per cent year-on-year (Y-o-Y) during
Zurich Insurance Group will buy a 70%
the April 2023-February 2024 period,
"Even though there were no major stake in Kotak Mahindra Bank's gen-
while motor insurance premiums have
claims last year, rates have increased eral insurance arm by paying 55.60
this year and we are seeing 30-35% gone up by 13.60 per cent. billion rupees (nearly $671 million)
higher quotes. The two segments of the industry to- upfront instead of staggering the pur-
gether account for more than 60 per chase as planned last year, the Indian
General insurance pre- cent of the overall non-life insurance lender said.

mium up 13% till Feb in business. Since the pandemic, the de- Under the original deal, announced in
mand for health insurance policies has
FY24 been on the rise due to increased November last year, Zurich was to buy
a 51% stake in the Kotak unit for 40.51
The non-life insurance industry, includ- awareness among people of being
billion rupees and an additional 19%
holding within three years of the first
Non-life insurance sector to grow 13-15% in medium purchase.
term The deal will be the largest investment

The non-life insurance market is expected to grow 13-15 per cent in the by a global insurer in a non-life insurer
medium term, primarily driven by the health and motor insurance seg- in the Indian market. The change in
ments, and increasing disposable income levels, according to CareEdge the deal's terms will not affect Kotak
Ratings. The health insurance segment continues to remain on track to General's valuation, which was 79.43
breach the Rs. 1 lakh crore mark whereas the motor segment crossed the billion rupees according to the filing
Rs. 80,000 crore threshold in FY24. from November 2023.
"The overall business growth is also being aided by a favourable regulatory
environment, stabilisation of loss ratios, and a focus on containing expenses, Non-life Cos to offer price
Care said. While strengthening distribution networks and higher investment data
will contribute to the sector's growth, competition is likely to increase as
Non-life insurance companies have said
new companies have commenced operations while others continue to be in they can help govt by providing
line to enter the segment, it said, adding that tensions around the Red Sea standardised rates for medical proce-
may impact the marine segment.
dures. The SC asked central govt to
"Despite this, overall outlook for the non-life insurance sector remains stable consult with states and implement a
in the medium term. However, intensified competition, an uncertain inter- law that would mandate notification of
national geopolitical environment, and elevated inflation could potentially standard rates for medical procedures.
negatively affect economic growth and subsequently impact the non-life
"The insurance industry settled Rs
insurance sector".
80,000 crore of health insurance claims
The non-life insurance industry reported premium of Rs. 22,378 crore in Feb- regarding bills from nearly 40,000 hos-
ruary 2024, returning to double-digit growth at 12.6 per cent, albeit slower pitals.
than 20 per cent in February 2023. Health insurance continues to be the
primary growth driver, with the segment's market share increasing from This data is available if the ministry
33.2 per cent FY22 YTD (year-to-date) to 37.5 per cent so far in FY24. wants to bring in data transparency to

8 April 2024 The Insurance Times