Irdai report: Claims rate of non-life insurance companies fell to 82.52% in fiscal year 2024

New Delhi, Dec 23 (PTI) Net incurred claims to net premiums earned (claims ratio) for the non-life insurance industry was 82.52 per cent in 2023-24, as compared to 82.52 per cent in the previous fiscal, according to Irdai’s annual report 82.95%. Report.

According to the Insurance Regulatory and Development Authority of India (Irdai) Annual Report 2023-24, the total direct premium written by the non-life insurance industry during 2023-24 was $India 2.9 billion rupees, an increase of 12.76% over the previous year.

Contribution of public sector general insurance companies increased by 8.88% $82,891 Crore in 2022-23 $90,252 crore in 2023-24.

Private sector insurers, including independent health insurers, have underwritten $18.80 Lakhs Rs. $158 crore in 2022-23.

The total profit of the non-life insurance industry is $10,119 crore, net loss was $2,566 crore in 2022-23.

During 2023-24, total net claims grew by 15.39% to $172 Crores Rs. $149 Crores.

“The incurred claims ratio (ratio of net claims incurred to net premiums earned) for the non-life insurance industry was 82.52 per cent in 2023-24 as compared to 82.95 per cent in the previous year,” the report said.

In 2023-24, the claims ratio of public sector insurance companies was 97.23% as compared to 99.02% in the previous year.

In 2023-24, the claims ratios of private sector general insurance companies, independent health insurance companies and specialized insurance companies were 76.49%, 63.63% and 66.58% respectively, as compared to the previous year’s ratios of 75.13%, 61.44% and 73.71% respectively. %.

The report also stated that the total benefits paid by the life insurance industry were $5.77 trillion in 2023-24, accounting for 70.22% of net premiums.

Benefits paid due to surrender/surrender increased by 15.29% to $229 crore in 2023-24, of which public sector life insurance companies account for 58.36%.

A total of 18 life insurance companies reported profits in 2023-24. In 2023-24, the profit of the life insurance industry will increase by 10.79%, and the profit after tax (PAT) will be $47,407 Crores Rs. $42,788 crore in 2022-23.

In 2023-24, profits of public sector life insurance companies grew by 11.75 per cent, while profits of private sector life insurance companies grew by 5.32 per cent.

Irdai said the country’s insurance penetration stood at 3.7% in 2023-24, compared with 4% in 2022-23.

The insurance penetration of the life insurance industry declined slightly to 2.8% during 2023-24 from 3% in the previous year.

The penetration rate of the non-life insurance industry remains at 1% in 2023-24 as compared to 2022-23.

As of March 31, 2024, there were 26 life insurance companies, 25 general insurance companies, 8 independent health insurance companies, 12 reinsurance companies and branches of foreign reinsurance companies, and 2 specialty insurance companies.