The Indian general insurance sector experienced modest year-on-year growth in premium collections for August, according to data from the General Insurance Council. However, several major players reported significant sequential declines in premiums compared to July.
ICICI Lombard General Insurance saw a 2.1% year-on-year increase in gross direct premium underwritten, reaching ₹2,182 crore. Nonetheless, its premiums dropped 12% compared to the previous month. New India Assurance reported an 8.7% annual increase, with premiums totaling ₹2,197 crore, but experienced a substantial 47% month-on-month decline, the steepest among major insurers.
Star Health and Allied Insurance’s premium rose 1.9% year-on-year to ₹1,426 crore. In contrast, Go Digit General Insurance achieved a 13.6% annual jump, with premiums reaching ₹738 crore, but slipped 16% on a sequential basis. Bajaj Allianz General Insurance posted the strongest annual growth, with premium collections up 18.8% year-on-year at ₹2063.2 crore.
The declines in premiums for several major insurers may indicate a slowdown in the Indian general insurance sector. The significant drop in premiums for New India Assurance, in particular, may be a cause for concern. Despite the year-on-year growth, the sequential declines suggest that the sector may be experiencing a temporary downturn.
Overall, the data from the General Insurance Council highlights the mixed performance of Indian general insurers in August. While some insurers reported strong annual growth, others experienced substantial sequential declines. The sector’s performance will be closely watched in the coming months to determine if the declines are a one-time phenomenon or a sign of a larger trend. The Indian general insurance sector will need to adapt to changing market conditions to maintain growth and stability.