Motor insurance share falls below 30% as health premiums surge
motor insurance in non-life industry premiums has fallen below 30% for the first time, according to data released by the General Insurance Council as of June-end, reported TOI. The non-life industry wrote premiums totaling Rs 72,758 crore, marking a 13.3% increase from the previous year. Health insurance continues to lead the growth with a 16.6% increase in premiums, reaching Rs 29,915 crore, while motor insurance grew by 11.9% to Rs 21,348 crore.
At the end of the quarter, health insurance accounted for 41.1% of the total non-life insurance premiums, whereas motor insurance's share decreased to 29.3%.
The shift in share is attributed to a slowdown in car sales, with insurers pointing out that the focus of motor insurance is largely on new cars due to regulatory requirements. These rules mandate buyers to purchase three years of cover upfront for cars and five years for two-wheelers, influencing the dynamics of motor insurance premiums.
Flash figures for July show that growth in non-life insurance remains in the single digits for the second consecutive month. The data indicates that the industry collected Rs 26,567 crore in premiums in July, reflecting a 9% increase over July 2023. This collection was slightly higher than June's, which stood at Rs 20,384 crore, as per TOI report.
The slowdown in overall premium collection is primarily due to motor insurance's slower growth compared to the rest of the industry. Health insurance continues to be the primary driver of the non-life sector, with standalone health
