The general insurance industry grew 14.86 per cent in the first six months of 2023-24 over the corresponding period of 2022-23. But high claims repudiation and claims adjustment have emerged as a concern, particularly in the health segment.

Gross direct premium underwritten by general insurance companies and standalone health insurers stood at Rs 1,43,800.26 crore during the April-September period against Rs 1,25,197.23 crore in the year-ago period, according to data from the General Insurance Council.

While general insurance companies grew 17.61 per cent, standalone health insurers grew at a faster rate of 25.24 per cent during the period.

Market analysts anticipate a 13-15 per cent growth for the general insurance industry in the near term.

“The Indian non-life insurance market will grow at a rate of approximately 13-15 per cent in the medium term. The industry’s growth will be primarily driven by health and motor insurance segments. The overall business growth will be further aided by improving profitability, stabilisation of loss ratios, focus on containing management expenses and a favourable regulatory environment,” said CareEgde Ratings in a note on the industry outlook.

Claim repudiation

A study by Emkay Research covering a sample of five general insurance companies shows nearly one third of the reported claim amount is either repudiated or adjusted.

Claims repudiation occurs largely on account of exclusion of claims (pre-existing disease or procedure not covered), false information provided at the time of policy purchase and fraudulent claims.

Life insurance

Life insurance premium underwritten by 27 companies, including LIC, stood at Rs 1,58,376.81 crore during the first six months of 2023-24, down 12.97 per cent from Rs 1,81,976.95 crore a year ago.

LIC posted a 25.4 per cent year-on-year fall in new business premium, according to the Life Insurance Council.