Crop, motor and health business is expected to drive growth of the Indian non-life sector by 20% in the current fiscal year ending March 2018 (FY2018), according to Mr Karthik Srinivasan, Senior Vice-President and Group Head Financial Sector Ratings, ICRA.
Mr Srinivasan said that the central government’s initiatives aimed at improving the penetration and density levels coupled with the industry’s ability to leverage technology and reach is likely to boost business over the medium to long term.
He said that in FY2017, crop insurance was the fastest growing segment for the entire industry. The segment grew by 6.5 times and had a 12% market share in FY2017 vis-a-vis 2% in FY2016.
“With the government keen to increase the acreage under insurance, crop insurance segment is expected to grow in the current year as well albeit at lower pace as the availability of reinsurance capacity would be a key requirement,” he said.
According to him health and personal accident grew at 4.2% in FY2017 and are likely to grow at a fast pace given the increased retail focus of the players. The corporate segments continued to record low growth and only a pickup in the investment cycle would reverse the trend.