Crop insurance has helped the non-life industry record a 32% growth in premiums the last fiscal year ended 31 March 2017 to over INR1 trillion (US$15.5 billion) for the first time, despite the absence of new large projects.
Crop insurance has emerged as the third largest line of business after motor insurance and health insurance following the launch of the government-subsidised crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) last year, reported Times of India.
Provisional data for non-life insurance companies released by the IRDAI for FY2016-17 show that total premium income soared to INR1.27 trillion from INR963.76 billion for the previous financial year.
"Of the 32% growth, nearly 16% came from crop insurance," said Mr G Srinivasan, Chairman of New India Assurance, the country's largest non-life insurer.
Mr Bhargav Dasgupta, MD & CEO of ICICI Lombard General Insurance, the largest private non-life insurer, said: “For us, crop insurance is almost 10% of the total premium and it's the third biggest line of business."
In the overall non-life market, IRDAI data show that private sector insurers beat their state-owned rivals in GWP. Public general insurers collected INR676,897 million in FY2016-17, showing a 29% growth. Private non-life insurers, on the other hand, collected premiums of INR595,228 million reflecting a 36% increase. As part of the privately-held segment, standalone private health insurers collected INR58,598 million, or 41% more than in FY2015-16.
New India Assurance continued to report the highest market share with GWP of INR190,651 million for FY2016-17, representing an increase of 26% and a market share of 15%. This compared to GWP of INR151,495 million for FY2015-16, representing a market share of 15.7%.