India’s Leading BFSI and FinTech Companies 2022

26 India’s share in global insurance market stood at 1.72% in 2020 against 1.69% in 2019. In life insurance business, India has maintained its 10th rank globally with market share of 2.9% in 2020. In non-life insurance business, India’s share in global non-life insurance market was 0.77% during 2020. Current scenario Structure of Indian Insurance sector Growth in Gross Direct premiumof insurers witnessedmoderation in FY21 24 Life Insurer s 27 General Insurers 5 Stand-alone Health Insurers 11 Reinsurer s 10.8 12.7 9.7 12.5 11.5 5.2 0 4 8 12 16 FY19 FY20 FY21 % y - o -y Life Insurance General & Health Insurance Source: IRDAI Source: IRDAI Gross direct premium of both life insurers and non-life (General & Health) insurers witnessed moderation in FY21. In case of life insurance segment, the decline of almost 21% in first year premium led the moderation in gross direct premium in FY21. The decline in first year premium can be ascribed to decline in new individual policies issued by life insurers during the year consequent to the supply side constraints amidst the pandemic. The ability to quickly adapt to digital ways seems to have enabled private sector life insurers to fare better as compared to the public sector life insurer. In case of non-life insurers, premium income of all the sub-segments excluding health (fire, marine, motor and other) either witnessed a decline or moderation in growth in FY21. Growth in premium income of health insurers also remained flat at 12% in FY21 as compared to the previous year. In case of motor insurance, slump in vehicle sales due to lockdown led to moderation in premium growth in FY21. In terms of profitability indicators, life insurance sector reported 12% y-o-y increase in net profit to ` 86.6 bn in FY21. General insurance sector reported net profit of ` 38.5 bn in FY21 as against a net loss of ` 14.9 bn in FY20. Improvement in the profitability of general insurance sector can also be gauged from reduction in incurred claims ratio to 81.1% in FY21 as against 85.9% in FY20. While all 24 life insurers complied with the stipulated solvency ratio of 1.5, 26 out of 27 private sector general insurers (including the standalone health insurers) have complied with the stipulated Solvency Ratio of 1.50 in FY21. This implies that most of the reported insurers have enough financial buffer to settle all claims in extreme situations. With intensifying Russia-Ukraine crisis, the insurance premium for cargo ships sailing to the region has increased. INSURANCE Dun & Bradstreet