The expansion in Might slowed in comparison with 14.9% YoY reported in the identical month final yr. The slowdown in premium progress is essentially attributed to the 1/n rule, which kicked in October, specialists stated.
Beneath the 1/n rule, IRDAI has mandated non-life insurers to report premiums yearly even when the coverage time period is longer than one yr. Accordingly, the reported premium is calculated by dividing 1 by the variety of days the coverage is in impact.
“The flash numbers for Might reported a modest progress indicating that the trade remains to be adjusting with the 1/n rule on premium reporting. Regardless of the affect, the expansion appears to be supported by renewal of economic traces like fireplace insurance coverage, and progress in SAHI gamers indicative of regular demand in medical insurance,” stated Saurabh Bhalerao, Affiliate Director, CareEdge Scores.
Barring SAHIs, total premiums collected by normal insurers grew 5.7% YoY to 19,210 crore in Might. Eight out of the 25 normal insurers reported year-on-year fall in premium collections within the reporting month.
Among the many listed normal insurers, New India Assurance led positive aspects amongst main gamers in Might. The state-run insurer reported a 22.47% leap in gross premiums to Rs 2,944 crore, serving to its market share edge as much as 16.06% from 15.15% in Might 2024.Personal sector main ICICI Lombard Normal Insurance coverage noticed premiums rise 2.41% year-on-year, whereas Go Digit Normal Insurance coverage noticed a 2.19% drop in premiums. Newly listed Niva Bupa Well being Insurance coverage registered a 9.69% improve in premiums to Rs 554 crore.Whole premiums by standalone well being insurers grew 10% YoY to Rs2,917 crore in Might. Among the many seven SAHI gamers, ManipalCigna Well being Insurance coverage topped the chart with almost 43% progress in premium collections, adopted by 36% progress reported by Aditya Birla Well being Insurance coverage.