The Indian insurance sector experienced a decline in premium collections in August, with several leading insurers reporting sharp drops on a month-on-month (MoM) basis. In the general insurance segment, New India Assurance saw the steepest decline, with premiums falling 47% MoM to ₹2,197 crore. However, the company attributed this drop to the timing of policy receipts, citing the receipt of a quarterly installment of a government health policy in the previous month. Despite this, New India Assurance reported an 8.67% growth in premiums on a year-on-year (YoY) basis and a 14.66% growth up to the month on a YoY basis.
Other insurers also reported declines in premium collections. ICICI Lombard saw a 12% MoM decline in premiums to ₹2,182 crore, while Go Digit General Insurance registered a 16% MoM drop to ₹738 crore. Health insurers Niva Bupa Health Insurance and Star Health Insurance also reported contractions, with premiums declining 4% and 6% MoM, respectively.
This decline comes after a period of steady expansion in the insurance sector, with many insurers reporting strong inflows in July. In fact, New India Assurance, ICICI Lombard, Go Digit, Niva Bupa, and Star Health all posted double-digit MoM growth in July, highlighting a sharp contrast with the August figures. The decline in premium collections may be a temporary blip, and the sector is expected to continue growing in the long term. The insurance sector’s performance is closely watched, as it is a key indicator of the overall health of the economy. The decline in August may be attributed to various factors, including seasonal fluctuations and changes in policy receipts. However, the sector’s growth on a YoY basis suggests that it is still on a positive trajectory.