General insurance sector may see 7-9 pc growth in GDPI in FY22: Report

In 2020-21, the industry's total GDPI grew four per cent y-o-y to Rs 1.85 lakh crore.

Mumbai: Helped by higher growth in health and motor insurance segments, the general insurance industry is likely to clock a 7-9 per cent growth in gross direct premium income (GDPI) in the financial year 2021-22, ICRA Ratings said in a report.

In 2020-21, the industry’s total GDPI grew four per cent y-o-y to Rs 1.85 lakh crore.

While public sector insurance companies were slower to adjust to an online mode of growth, the reliance on physical meetings were higher which resulted in a two per cent y-o-y decline in business (Rs 71,800 crore in FY2021), the credit rating agency said in the report.

The private sector companies reported an eight per cent y-o-y increase in gross direct premium income (GDPI) to Rs 1.13 lakh crore in the same period, the agency added.

“We expect a 7-9 per cent growth in GDPI in FY2022, supported by growth in health segment and uptick in motor segment,” the agency’s Assistant Vice-President and Sector Head (Financial Sector Ratings) Sahil Udani said in the report.

The analysis is based on the performance of 17 general insurance companies collectively representing 90 per cent of the industry-wide gross direct premium written (GDPI) during the nine month of FY2021, the agency said.

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