Collective gross direct premium underwritten for non-life insurance companies grew 22.99% year-on-year to Rs 54,491.27 crore for the first quarter this fiscal from Rs 44,303.91 crore for the same period last fiscal, data from insurance regulator IRDAI showed on Friday.
For the month of June, a total of 32 non-life insurers posted a growth of 20.66% y-o-y in gross direct premium underwritten at Rs 17,810.57 crore compared to Rs 14,761.05 crore for the corresponding period last fiscal.
Up to the month of June 2022, gross direct premium underwritten for 25 general insurance companies grew 22.73% y-o-y at Rs 48,860.47 crore, while for five stand-alone private insurers it increased by 28.63% y-o-y at Rs 5263.79 crore, according to the data compiled by the Insurance Regulatory and Development Authority of India (IRDAI).
Agriculture Insurance Company of India and ECGC Ltd, the specialized PSU insurers, collectively posted an 8.34% y-o-y de-growth at Rs 367.01 crore in their gross direct premiums underwritten for the months of April, May, and June 2022 from Rs 400.39 crore for the same period of 2021.
The IRDAI on Friday said it has not taken any decision on mandatory disclosure of commissions on policy documents. “It has come to the notice of the Authority that concerns are being expressed in some quarters regarding mandatory disclosure of commissions on the policy documents. The concerns emanate from certain recommendations made by Working Groups constituted by the Insurance Councils,” the regulator said in a release.
“It is hereby clarified that the Authority has not taken any decision on this matter,” it said, adding the IRDAI will hold extensive consultations with all stakeholders before any such decision is taken.
The country’s insurance regulator has also extended the “Use and File” procedure to products covering Agriculture and allied activities. Agriculture and allied activities constitute one of India’s largest sources of livelihood. Also, the adverse impact of natural catastrophes on the vulnerable segments of society is enormous and underlines the need to design and offer suitable insurance products for their protection. “This move will facilitate the insurance companies to design and launch innovative products for these segments in a timely manner and expand the choices available to the policyholders,” IRDAI said after issuing a circular on Thursday, adding this circular will come into effect immediately.
Notably, the regulator last month extended the ‘use and file’ procedure for most life insurance products, allowing the life insurance companies to launch new products without their prior approvals. It also permitted insurers to establish health and most of the general insurance products by extending the ambit of the ‘use and file’ procedure, thus giving them greater leeway in designing and pricing insurance covers in line with market needs.