The growth in May slowed compared to 14.9% YoY reported in the same month last year. The slowdown in premium growth is largely attributed to the 1/n rule, which kicked in October, experts said.
Under the 1/n rule, IRDAI has mandated non-life insurers to report premiums annually even if the policy term is longer than one year. Accordingly, the reported premium is calculated by dividing 1 by the number of days the policy is in effect.
“The flash numbers for May reported a modest growth indicating that the industry is still adjusting with the 1/n rule on premium reporting. Despite the impact, the growth seems to be supported by renewal of commercial lines like fire insurance, and growth in SAHI players indicative of steady demand in health insurance,” said Saurabh Bhalerao, Associate Director, CareEdge Ratings.
Barring SAHIs, overall premiums collected by general insurers grew 5.7% YoY to 19,210 crore in May. Eight out of the 25 general insurers reported year-on-year fall in premium collections in the reporting month.
Among the listed general insurers, New India Assurance led gains among major players in May. The state-run insurer reported a 22.47% jump in gross premiums to Rs 2,944 crore, helping its market share edge up to 16.06% from 15.15% in May 2024.
Private sector major ICICI Lombard General Insurance saw premiums rise 2.41% year-on-year, while Go Digit General Insurance saw a 2.19% drop in premiums. Newly listed Niva Bupa Health Insurance registered a 9.69% increase in premiums to Rs 554 crore.
Total premiums by standalone health insurers grew 10% YoY to Rs2,917 crore in May. Among the seven SAHI players, ManipalCigna Health Insurance topped the chart with nearly 43% growth in premium collections, followed by 36% growth reported by Aditya Birla Health Insurance.
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