The coronavirus (Kovid-19) disruption and subsequent government-imposed lockdown had a significant impact on the non-life insurance industry premiums in the month of March.
The motor and health segment led the decline in premiums for the industry as the industry declined 9% in the month of March. The motor segment saw a 7 percent drop in premium, while health saw an 11 percent drop in premium.
The premium for the credit insurance segment declined 42 per cent, while the personal accident segment saw a 53 per cent drop in premium.
However, for the full year, the industry reported a 12 percent increase in premiums in the motor and health sectors, leading to a slight increase in premium collections.
According to ICICI Securities, the weakness of the industry is expected to continue due to the economic slowdown – except for the health segment where increased awareness will generate strong traction. It has also been said that the non-life industry may go through a reversed V-shaped income profile due to low claim ratios during lockdown, but eventually face lower premium growth in line with the economy amid a hyper-committal environment , Which will reduce 2222 income.