Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

India's general insurance market facing stagnation

Open-access content Tuesday 16th June 2020

iStock-1215701246.jpg

The growth rate of India's general insurance industry is set to more than halve this year as a result of the COVID-19 pandemic, analysis by GlobalData suggests.

The data and analytics firm predicts India's general insurance market to grow by just 4% this year, down from 10% in 2019.

Declines in key sectors such as automotive, manufacturing and construction are expected to heavily impact the industry after they accounted for more than 47% of general insurance premiums in 2019.

In total, GlobalData forecasts a compound annual growth rate (CAGR) of 6.2% for the general insurance market from 2019-2023.

“The country-wide lockdown that lasted for over two months added pressure on the economy that was already showing signs of slowing down," said GlobalData insurance analyst Pratyusha Mekala.

“Indian economy is now expected to grow at 1.63% in the financial year 2020-21, as compared to the pre-COVID estimate of 6.4%. The slowdown in economic activity will result in lower premium collections in the general insurance segment.”

How India's general insurance market is forecast to grow is shown below:

globaldata.PNG

GlobalData said that India's motor industry is facing severe slowdown due to supply chain disruptions, stalled production and low demand, with zero sales registered in April 2020 due to the lockdown. 

Sales picked up marginally in May after restrictions were eased by the government, but are well below pre-COVID-19 levels.

Similar stagnation is observed in construction and real estate where demand reduced by 30% in the first quarter of 2020, which is expected to result in fewer new business premiums in the property insurance line of business.

“Lockdown restrictions are being eased by the government, however, the risk of outbreak persists as large number of cases are being registered daily across the country,” Mekala continued.

“While the easing of lockdown restrictions will help revive the stalled business operations, recovery in general insurance segment is expected to be a protracted one, taking as long as the second half of financial year 2021.” 

 

Author: Chris Seekings

Image credit: iStock

Graphic credit: GlobalData

 

You may also be interested in...

iStock-1219125996.jpg

COVID-19 to hit insurers three times harder than last financial crash

The coronavirus crisis will hit insurance premium growth three times harder than the 2008 financial crash did, forecasts by Allianz suggest.
Wednesday 1st July 2020
Open-access content
web_china_iStock-1160497333.png

China to lead insurance market recovery

Insurance premiums will continue to grow in emerging economies like China this year, research by Swiss Re suggests, although advanced markets will suffer sharp contractions.
Monday 13th July 2020
Open-access content
Covid-iStock-1211119516.jpg

Insurers facing unprecedented losses of over $200bn

The global insurance industry is facing losses in excess of $200bn (£165bn) this year as the coronavirus crisis triggers record payouts while slashing investment values, Lloyd's of London has warned.
Monday 18th May 2020
Open-access content
bumble-bee_istock-866707878.png

Asset managers ignoring biodiversity loss

None of the world's 75 largest asset managers have a dedicated policy on biodiversity loss, despite the issue being ranked among the biggest challenges facing the world today.
Wednesday 17th June 2020
Open-access content
iStock-530809521.jpg

COVID-19 could trigger 'sharp rise' in antimicrobial resistance

The coronavirus pandemic could lead to a “sharp rise” in antimicrobial resistance due to the widespread use of antibiotics as treatments, microbiologists from Queen's University Belfast have warned.
Wednesday 10th June 2020
Open-access content
iStock-870901960.jpg

Ransomware attacks soar 25% during COVID-19 crisis

Ransomware cyber attacks increased by 25% worldwide in the first quarter of this year compared to the final three months of 2019, based on incidents reported to Beazley Breach Response (BBR) Services.
Tuesday 9th June 2020
Open-access content
Also filed in
News
Topics
General Insurance
Global
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ