What is your outlook on India’s general insurance industry? Can you highlight the key high-growth segments and other developments that have materialised post-pandemic?
The Indian general insurance market was significantly underpenetrated at 1 per cent in calendar year 2020 compared with other emerging markets, as for example, China with 1.9 per cent penetration and developed nations like the USA where penetration stands at 9 per cent. This is as per the findings of the Swiss Re 2021 report. The general insurance industry has delivered gross direct premium income CAGR of 15.8 per cent for the last 13 years i.e. FY 2008-21 since de-tariffication and has shown resilience despite the pandemic.
In the recently concluded fiscal, the industry delivered a mixed performance. As per the data published by Society of Indian Automobile Manufacturers (SIAM), new vehicle sales witnessed tepid growth in the private car segment on the back of supply chain challenges. The two-wheeler segment remained far from recovery while the commercial vehicle segment has shown growth supported by underlying demand. Health insurance, on the other hand, contributed significantly to the overall industry growth in line with expectations.
In fact, it is now the largest contributing segment to the gross direct premium income (GDPI) of the industry. The commercial lines witnessed robust growth in sync with the current market environment. The overall outlook for the general insurance industry in India is positive, especially on the back of strong automobile demand, better coverage through health insurance and increased capex by the government as indicated in the Union Budget 2022 along with increased infrastructure activities.
Denne historien er fra June 20, 2022-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra June 20, 2022-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
