The Indian Non-life Insurance Industry Yearbook 2018-19 is in its sixth edition. The endeavour has been to reflect industry trends for various stake holders. This Yearbook maybe read keeping in view the following caveats:
1.Definitions of Terms Used:
The specific definition of various Non-Life industry business parameter terms used in this Yearbook 2018-19 are as per existing IRDAI Guidelines ( Extract reproduced for ready reference).
As per IRDAI Master Circular on preparation of Financial Statements – General Insurance Business, October 2012 and corrigendum dated 3rd July, 2013:
- Gross Direct Premium : Premium booked directly from the Insured/Policyholders excluding the service tax element thereon;
- Gross Written Premium : Gross Direct Premium plus Inward Reinsurance Premium accepted during the period (Direct Premium plus Premium on reinsurance accepted);
- Net Premium / Net Written Premium / Net Retained Premium : Gross Written Premium less premium on reinsurances ceded (Retention of the insurer after considering all types of reinsurances);
- Net Earned Premium : Net Premium after adjustment for movement in the Reserves for Unexpired Risks in any given Accounting period;<br>
- Gross Incurred Claims : Gross Claims paid plus gross movement in claims outstanding (including gross IBNR/IBNER). This includes claims relating to both Direct ad Reinsurance accepted.
Gross Incurred Claims = Gross Claims paid (both Direct and Reinsurance Accepted) PLUSGross Claims outstanding at the end of the period (both Direct and Reinsurance accepted)
- Net Incurred Claims : Net Claims after accounting for recovery of claims from reinsurers. This includes net claims relating to both Direct and Reinsurance accepted.
Net Incurred Claims = Net Claims paid (Gross Claims paid less reinsurance reinsurance recoveries of claims) PLUS Net Claims outstanding at the end of the period (both direct and reinsurance accepted) LESS Net Claims outstanding at the beginning of the period (both direct and reinsurance accepted). Net outstanding claims include Net IBNR/IBNER
- Combined Ratio : Net Incurred Claims/ Net Earned Premium PLUS Expenses of Management (including Net Commission)/ Net Written Premium.
2.The other terms used in this Yearbook which are not part of the above list, carry the meanings as used in common business parlance in the Indian Non-life Insurance Industry context.
- Insurance Regulatory and Development Authority of India – Annual Reports 2015-16 and prior years from 2007-08 onwards;
- Planning Commission Archives regarding GDP Current prices and GDP annual growth rate from Niti Aayog website and SDP Data for states wherever made available in Niti Aayog web site;
- Gross State Domestic Product (GSDP) at current prices wherever made available mostly from secondary sources of data;
- Handbook of Statistics on Indian Economy, RBI 2018-19
- Growth rates of GDP at factor cost (at 2004-05 prices & 2011-12 prices) from RBI website;
- Public disclosures of non-life insurance companies as at 31st March 2019;
- Data collected and collated by the General Insurance Council as at 31st March 2019, ( referred to as Council Compilation)
- Ten year data of premiums, commissions and claims obtained from all the member companies (except GIC Re) and collated;
- Rural premiums have bee collated from premium figures sent by member companies to IRDAI on monthly basis;
- Analysis of paid claims and outstanding claims as on 31.3.2019 have been attempted through collating figures sent by member companies to IRDAI ( Form 6 of Form I-X);
- The heatmaps data have also been taken from the IRDAI (Form I-X) submitted by member companies;
4.Financial figures are in ₹ Crores, where ₹ 1 Crore = ₹ 10 Million
5. Disclaimer & Copyrights
The Yearbook 2018-19 has been made with an objective to reflect trends in the Non – Life Insurance Industry in India. The aim is to provide the user with an understanding of the working of the Non – Life Insurance Industry. The data and analysis forming part of the Yearbook should be considered for information purposes only. The factual correctness of the data has been sought to be ensured by using publicly available information as reported in IRDAI annual reports, Non – Life Insurance company public disclosures and annual reports and data reported to the General Insurance Council as per designated formats. Different sources of data have been used for segment-wise, state-wise as well as consolidated GDPI charts. It is observed that there are minor differences between the data contained in these sources which could be due to inconsistencies in reporting data or timing differences. Users may please take note of this while making use of tables and charts in this Yearbook.
The macro-economic data has been primarily taken from the publicly available information on the erstwhile planning commission archives/Niti Aayog website/RBI/Ministry of Finance and other secondary sources of data.