General insurers see signs of growth revival

The penetration of general insurance products like health, motor, and property remains low in the country, but there are early signs of a growth revival in the industry and the beginning of market expansion, according to top CEOs (chief executive officers) of general insurance companies.

- KRISHNA KANT

Speaking at the Business Standard BFSI Insight Summit, the heads of some of the largest general insurance companies said that they faced many growth challenges in recent years, but the industry is on the cusp of a new phase of growth and expansion. This will help the industry realize the government and the Insurance Regulatory and Development Authority of India (Irdai)'s vision of "insurance for all by 2047," when India is expected to be a developed country.

"Low penetration of insurance products such as health and motor is an issue, but green shoots are clearly visible now. Various insurance companies have already begun to make fresh investments, open offices at newer centers, and recruit new distributors. The groundwork has been done and it will start to show up in policy sales and penetration data soon," said Anuj Tyagi, MD & CEO of HDFC Ergo General Insurance Company.

According to Irdai data, the premium to gross domestic product (GDP) ratio for the general insurance sector has been stagnant at around 1 percent for some years now, which has raised concern in the industry regulator and the government. Tyagi added that growth in policies and penetration is being aided by regulatory moves such as Vima Vahak, Vima Vistar, and Vima Sugam.