The yearbook 2022-2023 has been developed to present a comprehensive analysis of the Indian Non-Life Insurance Market to the stakeholders in the industry, keeping with the traditions of the previous year’s yearbooks.

Each chapter of the yearbook has been specifically organized to focus on different aspects of the Indian non-life insurance industry. Covering macro-economic and insurance indicators, state-wise penetration and density, Industry Business Highlights, Segmentwise Business Highlights, Underwriting results, Customer Service and Reinsurance. The annexures include data tables and information on the working of the companies.

The Yearbook has been developed with sources of data available within the GI Council, Non-life Insurance Industry players, and the Regulator. Economic data has been sourced from RBI and various government sources.

A close study of the performance since 2013-14 discloses that the Non-Life Insurance Insurers have maintained steady growth in all facets of performance over the years. Economic growth of the country, expansion of the associated industries, increasing purchasing power of the middle-class, a growing young working population, increase in number of vehicles, better infrastructure, growth in health awareness and preventive healthcare are encouraging indicators for the Non-Life Insurance industry for a positive future trend.

The Yearbook also highlights the status of Non-life Insurance penetration in the country in the form of heat maps and gives claims data state-wise. The heat maps show a panoramic view of how the Non-Life Insurance penetration has improved during the last 10 years. Additionally, a brief summary of the key findings of each section’s investigation is included in every chapter.

The salient features of the non-life industry for the year 2022-23 were:

  • 2022-23 exhibited a 14.7% GDPI growth in comparison with the 11.1% of the previous year 2021-22.
  • From a distribution point of view, business through brokers has been the largest contributor to GDPI, and it is growing at a faster rate in recent years than the other big contributors viz. Agents and Direct.
  • From a product perspective, Health and Personal Accident insurance premiums has increased significantly this year, which is also the largest contributor of GDPI.
  • Recruitment has started increasing again, the total employee number in 2022-23 stands at 162,906. The industry absorbed 8,990 new personnel in the current fiscal year.
  • The industry has increasingly invested in the social and infrastructure sector over the last decade. This year the amount invested is ₹ 1,01,782 Cr.

Key parameters and comparisons:

Macro-economic:

  • Insurance penetration (in percentage) at current prices increased from 0.69 in 2013-14 to 0.94 in 2022-23. Insurance penetration increased steadily from 2013-14 to 2020-21, crossed the 1% mark in 2020–21, and then declined in 2021–22.
  • Insurance density has increased almost three-fold from ₹ 620 in 2013-14 to ₹ 1,798 in 2022-23. This year it has increased from ₹ 1,563 in the previous year.

Industry Growth and Capital Leverage:

  • Gross Direct Premium Income (GDPI) in India has increased from ₹ 77,525 Crores in 2013-14 to ₹ 2,56,894 Crores in 2022-23.
  • Yields on investment income have decreased for the last four years, this year it stands at 8.78%.
  • Capital employed has increased from ₹ 42,806 Crores in 2013-14 to ₹ 90,133 Crores in 2022-23, while Investments have almost quadrupled from ₹ 1,20,854 Crores in 2013-14 to ₹ 4,63,605 Crores in 2022-23.

Operational Parameters

  • Number of Insurance offices increased from 2012-13 till 2018-19, after that the growth plateaued. In 2022-23 the number of offices were 9,928.
  • Number of policies issued has increased from 11.66 Crores in 2013-14 to 30.47 Crores in 2022-23. The growth has been 12.10% over the previous year.
  • Overall net retention ratio has increased from 72.0% in FY 21-22 to 72.2% in FY 22-23.

Class – Mix

  • Health and accident insurance accounts for the highest share of GDPI at 38.0% increase from 36.5% of the previous year, closely followed by Motor Insurance at 31.6%. Health and accident segment has also been growing at the highest rate, with a CAGR of 19.5% over the period 2013-14 to 2022-23. Crop insurance is also an important segment contributing majority premiums in Other Misc.
  • The Gross Incurred Claims ratio dropped to 75.69% in 2022–23 from 94.50% in the previous year, while the Net Incurred Claims ratio dropped substantially to 83.23% in 2022–23 from 105.3% in the prior year. One of the reasons for the same is that the outgo on COVID claims which was there in 21-22 has been extinguished, Hence, one can infer that better claims handling in health insurance has resulted in an improved underwriting performance.

Underwriting Results

  • Underwriting deficit has increased this year, reversing the trend of the last three years, with the increase in claims. It is (₹ 33,154) Cr in 2022-23 from (₹ 31,949) Cr of the previous year.
  • Specialised Insurers showed successful underwriting results in FY 2022–2023. Thus, specialised insurance has experienced growth. and profitability.
  • There was an overall loss (after tax) for the industry for the current financial year amounting to (₹ 1,949) Cr as compared to profit after tax of (₹ 3,869) Cr in the previous year.

Conclusion

In conclusion, the Non-Life Insurance industry continues to show maturity and resilience over the last 10 years despite facing many operational challenges, since the removal of tariffs. The industry players are well poised to take advantage of the favorable business climate emerging from various Government initiatives to tap the huge untapped potential in the Indian markets in the years to come. The Industry will continue to become a more important part of the Country’s economic and social fabric. With Government initiatives in various sectors, the Industry seeks to create value and tap potential with increasingly better reach, technology, infrastructure, education and awareness.