According to IRDAI Report Claims Ratio of Non-Life Insurers Declines to 82.5% in FY24and Insurance Penetration at 3.7%.
Banking & Finance
According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (IRDAI), the claims ratio (net incurred claims to net earned premium) of the non-life insurance industry decreased to 82.52% in the Financial Year 2023-24 (FY24), down from 82.95% in FY23.
- The report revealed that the non-life insurance sector in India underwrote a total direct premium of Rs 2.90 lakh crore during FY24, marking a growth of 12.76% compared to the previous year. This growth is primarily driven by increased health and motor insurance premiums from individuals.
- India's insurance penetration stood at 3.7% in FY24, a decline from 4% in FY 2022-23.
Main Point :- (i) The report highlighted that the contribution of public sector general insurers increased by 8.88%, rising from Rs 82,891 crore in FY23 to Rs 90,252 crore in FY24.
(ii) Private sector insurers, including standalone health insurers, underwrote Rs 1.88 trillion in FY24, compared to Rs 1.58 trillion in FY23.
(iii) The report highlighted that life insurance companies paid a total of Rs 5.77 lakh crore in benefits in FY24, which accounted for 70.22% of the net premium.
About IRDAI
Chairperson : Debasish Panda, IAS
Headquarters: Hyderabad
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