New Delhi: The annual report released by the insurance regulator and institute showed that the claims ratio of net earned premiums, known as the non-life insurance industry’s claims ratio, was 82.52 per cent in 2023-24 compared to 82.95 per cent in the previous financial year. Development Authority of India (Irdai) for the year 2023-24.
According to an Irdai report, during the period 2023-24, the non-life insurance industry earned direct premiums of Rs 2.90 lakh crore in India, an increase of 12.76 percent over the previous year. “The contribution of public sector general insurers increased by 8.88 per cent from Rs 82,891 crore in 2022-23 to Rs 90,252 crore in 2023-24. Private sector insurers, including standalone health insurers, contributed Rs 1.88 lakh crore as against Rs 1.58 lakh crore in 2022-23. are written,” it said.
Gross profit in the non-life insurance sector was Rs 10,119 crore in 2022-23 compared to a net loss of Rs 2,566 crore. “During 2023-24, total net expense claims are seen to increase by 15.39 per cent from Rs 1.49 lakh crore to Rs 1.72 lakh crore. The ratio of claims to net earned premium or net expense claims of the non-life insurance industry is 82.95 per cent in the previous year, 2023-24. was 82.52 percent,” the report said.
According to the report, the expense claim ratio for public sector insurers was 97.23 per cent for 2023-24 as against the claim ratio of 99.02 per cent in the previous year. “The expense claim ratio for private sector general insurers, standalone health insurers and specialty insurers was 76.49 per cent, 63.63 per cent and 66.58 per cent in 2023-24, respectively, as against the previous year’s ratio of 75.13 per cent. 61.44 per cent and 73.71 per cent, respectively. ,” it said.
The report also said that the life insurance industry paid a total profit of Rs 5.77 lakh crore in 2023-24, which is 70.22 per cent of the net premium. “Benefits paid on account of surrender/withdrawal increased by 15.29 per cent to Rs 2.29 lakh crore in 2023-24 with public sector life insurers accounting for 58.36 per cent,” the report added.
According to the report, a total of 18 life insurance companies made profit during 2023-24. Profit after tax of the life insurance industry increased by 10.79 per cent in 2023-24 with profit after tax at Rs 47,407 crore as compared to Rs 42,788 crore in 2022-23. “Public sector life insurance companies reported an 11.75 per cent increase in profit, while private sector life insurance companies reported a 5.32 per cent increase in profit in 2023-24,” it added.