The overall insurance coverage business reported an annual premium of practically Rs 2.9 lakh crore for FY24 – a couple of 13% enhance from the Rs 2.6 lakh crore reported in FY23. However, the 5 standalone medical insurance corporations reported a 26.2% enhance in complete premium throughout the identical interval from Rs 26,243 crore to Rs 33,115 crore.These figures are based mostly on early knowledge launched by the council.
The expansion of the 5 standalone medical insurance corporations (SAHI) could be attributed to a rise in general ticket sizes, with all SAHI corporations launching high-value insurance policies that run into crores of rupees. There has additionally been a revision in premium charges to maintain up with medical inflation and the widening of the scope of canopy, insurers stated.
In response to an evaluation of Irdai’s annual report for FY23 by Emkay Finance, retail medical insurance premiums clocked a CAGR of 20% over FY12-19, whereas the variety of folks coated recorded a CAGR of 11%. Between FY19-23, nonetheless, the premiums’ CAGR was 19% – largely led by worth hikes and sum assured will increase – and the variety of folks coated grew solely 5.9%.
For the 11 months ended Feb 2024, the entire medical insurance premium was Rs 98,716 crore, up 20% from Rs 81,997 crore final 12 months. This determine consists of well being premium from normal insurers and SAHI corporations. The share of medical insurance for this era stands at 37.5%, up from 35.2% final 12 months.
The expansion in medical insurance has drawn new gamers, with Star Well being founder V Jagannathan’s Galaxy Well being and Surgeon Devi Shetty’s Narayana Healthcare getting licences.
Whereas different normal insurance coverage corporations are additionally seeing a rise in medical insurance premium, their efficiency is dragged down by slower development in different segments like motor, officers stated. The business is but to launch segmented knowledge for the complete 12 months. The non-life business this 12 months has been dragged down by slower development amongst specialised insurance coverage corporations – Agriculture Insurance coverage Firm and ECGC. Agriculture insurance coverage noticed its premium drop 32% to Rs 9,919 crore from Rs 14,619 crore final 12 months.
Personal insurance coverage corporations recorded a wholesome 14% development in premium at practically Rs 2.5 lakh crore in comparison with just a little over Rs 2.1 lakh crore final 12 months. Among the many public sector insurance coverage corporations, Oriental Insurance coverage reported the best development at 17%, whereas Nationwide Insurance coverage grew by lower than 1%. Personal insurance coverage and SAHI corporations elevated their market share by one share level.
