Page 673 - Insurance Statistics 2021

Indian Non-life Insurance Industry
Yearbook 2018-19

The organization of the Year book 2018-19 continues to focus on different aspects of Indian Non-Life Insurance Industry via Capital employed has increased from 24,791 crores in 2009-10 to 68,196 crores in 2018-19, while Investments have
each chapter. There are sections covering Macro-economic and Insurance Indicators, State wise penetration and density, increased more than five-fold from 48,891 crores in 2009-10 to 2,55,245 crores in 2018-19.
Industry Business Highlights, Segment wise Business Highlights and Customer Service. The Year book includes data tables
Operational Parameters (2009-10 versus 2018-19)
and information on the working of Non-life Insurance companies in the annexures.
Number of offices has more than doubled from 6,351 to 11,575
The Year book has been developed with sources of data available within the GI Council, Non-life Insurance Industry players Number of employees has grown from 92,135 to 135,308
and the Regulator. Economic data has been sourced from RBI and various government sources. Relevant data has also been Number of policies issued increased from 8.90 crores to 19.05 crores
collated from Annual reports and public disclosures of member companies and reports routed through the Council. Complaints Overall net retention ratio declined marginally from 70.3% to 68.4%
data for the year 2018-19 has been obtained from IRDAI for chapter on Service indicators. Number of claims handled has increased to 4.42 crores in the year 2018-19

Analysis of the performance of players since 2009-10 reveals that the Non-Life Insurance Insurers have maintained a steady
growth and solvency margins. The industry has maintained positive profit after tax figures for the year in continuation with
Motor Insurance business (comprising of both Own Damage and Third Party covers) accounts for the highest share of
the trend since 2011-12. Market competition has dominated all classes other than Motor TP since April 2008.
GDPI at 38.4% followed by health and accident insurance at 29.7% and property insurance business at 8.7%. It is
The year book also highlights the current status of Non-life Insurance penetration in the country in the form of heat maps and pertinent to know that the health and accident segment has grown at a CAGR of 20.7% over the period 2009-10 to 2018-19.
gives claims data state-wise. The heat maps show a panoramic view of the how the Non-Life Insurance penetration has
improved during the last 10 years.

The segment wise analysis in this yearbook looks at business from different angles. Every chapter also carries a short summary The Non-Life Insurance Industry has incurred underwriting losses since 2007. Underwriting losses increased substantially in
of the highlights of the analysis under that section. 2018-19 due to deteriorating claims ratios across product lines except Health Insurance and increase in Expenses of Management.

Comparison of Key parameters between 2009-10 and 2018-19: Motor TP administered rates continue to be inadequate due to, increasing number of Motor accident victims, severity of
injuries and increase in compensation awards by Courts

· Insurance penetration (in percentage) at current prices has increased from 0.61 in 2009-10 to 0.89 in 2018-19
Insurance density has increased nearly four-fold from 329 to 1,287 The number of customer complaints has come down by one-third from 1,86,615 in 2009-10 to 42,761 in 2018-19. Customer
complaints in absolute terms have declined by over 77% in the last decade. Relative measure of complaints to number of
policies issued, has come down from 0.21% in 2009-10 to 0.02% in 2018-19
The number of insurers offering general and health insurance is 34 in the current year, which is the same as Insurance Intermediaries (i.e. Individual Agents, Corporate Agents, Bancassurance, Brokers) have contributed around 63%
the previous year market share of the business
The opening of the market for reinsurers, has seen the establishment of the India branch of the Lloyds syndicate
as well as branches of nine other foreign reinsurers.
In conclusion, the Non-Life Insurance industry continues to show maturity and resilience over the last 10 years despite facing
many operational challenges, since removal of tariffs. The industry players are well poised to take advantage of the favorable
Gross Direct Premium Income (GDPI) in India has increased from 38,043 crores in 2009-10 to 1,69,448 crores business climate emerging from various Government initiatives to tap the huge untapped potential in the Indian markets in the
in 2018-19 years to come.

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