Page 10 - The Insurance Times September 2024

ance buying process. By collaborating according to data released by the Gen- ing slower growth in premium collec-
with industry leaders, the company is eral Insurance Council. This represents tions. For July 2024, the industry re-
able to deliver tailor-made offerings a 13.3% increase compared to the pre- corded a total premium of Rs. 26,567
that address the specific needs of di- vious year. However, the growth in crore, a 9% increase from July 2023.
verse user groups in an inclusive man- motor insurance has not kept pace This growth rate is in single digits for
ner. with the overall industry, with premi- the second consecutive month, further
As PhonePe continues to innovate and ums increasing by only 11.9% to reach highlighting the challenges faced by
expand its offerings, it is poised to play Rs. 21,348 crore. the motor insurance segment.
a crucial role in transforming the insur- In comparison, health insurance has Despite these trends, health insurance
ance landscape in India, making essen- seen a robust growth of 16.6%, bring- continues to be the major driver of
tial financial products available to a ing in premiums of Rs. 29,915 crore. growth in the non-life sector.
broader segment of the population. This surge has led to health insurance Standalone health insurance compa-
accounting for 41.1% of the total non- nies have reported a 25% increase in
Motor Insurance Share life insurance premiums, a significant premium income up to June 2024, re-
increase from previous years. Mean- flecting the strong demand for health
Drops Below 30% for the while, motor insurance's share has cover.

First Time Amid Rising slipped to 29.3%. Overall, the non-life insurance industry
Health Insurance Premi- Industry experts predict that the share remains dominated by health and mo-
of health insurance will continue to tor insurance, which together account
ums rise, driven by increasing demand and for over 70% of total premiums. Other
The share of motor insurance within a growing awareness of health risks. segments, such as property insurance
the non-life insurance industry has Conversely, motor insurance is ex- (less than 10% of total premiums) and
dipped below 30% for the first time, a pected to remain a drag on the crop insurance, personal accident, li-
significant milestone reflecting the sector's growth. The focus on new car ability covers, and miscellaneous insur-
ongoing slowdown in car sales. In con- sales for motor insurance, driven by ance (around 10% combined), continue
trast, health insurance continues to regulations requiring buyers to pur- to play a smaller role in the industry.
see rapid growth, outpacing other seg- chase three to five years of cover
ments in the non-life insurance sector. upfront, has limited the segment's Chola MS General Insur-
growth potential.
As of the end of June 2024, the non- ance Partners with
life insurance industry had written pre- Recent data also indicates that the Mahindra Finance
miums amounting to Rs. 72,758 crore, non-life insurance industry is experienc-
Chola MS General Insurance Company,
a joint venture between the
India Facing Escalating Climate Risks Amid Insurance Murugappa Group and Mitsui
Hurdles: WEF Sumitomo Insurance Company Limited
As climate change intensifies, vulnerable communities in India face increas- of Japan, has announced a strategic
ing risks. The widening insurance coverage gap prevents many from pro- partnership with Mahindra Finance, a
tecting their livelihoods against extreme weather. leading Non-Banking Finance Company
in India. This collaboration aims to pro-
Insurers face record underwriting losses, leading to higher premiums and vide motor and other non-life insurance
reduced coverage in high-risk areas. This leaves many without insurance, solutions to over 10 million customers
driving prices higher and shrinking the risk pool.
of Mahindra Finance.
Climate events impact nearly every aspect of India's economy. Agriculture, Executives from both companies high-
which comprises 15% of GDP and employs 40% of the population, is par-
ticularly affected. Significant crop losses and economic damages highlight lighted the partnership's potential to
the need for climate resilience. enhance their insurance offerings and
expand their market reach. The col-
By 2050, 45 million people may be forced to migrate due to climate change. laboration aims to bring innovative and
Insurers, policymakers, and stakeholders must collaborate to create solu- reliable insurance products to a
tions that protect vulnerable communities and support climate resilience. broader customer base.

10 September 2024 The Insurance Times