Even as the economy is forecast to shrink by over 7% during the current fiscal, the non-life industry is set to post a growth of over 4%. This is expected to result in a significant jump in insurance penetration (ratio of premium to GDP). Insurance penetration has been creeping up from 0.7% in FY15 to 0.94% in FY20 when the total premium was Rs 1.9 lakh crore.
“The industry was around Rs 10,000 crore in 2000 and is expected to be around Rs 2 lakh crore in FY21. By 2030, the industry should expand to Rs 8 lakh crore, assuming growth of 14%,” said HDFC Ergo MD & CEO Ritesh Kumar. He added that the industry was in a good place and HDFC Ergo has participated in its growth.
The private non-life insurer recently integrated Apollo Munich Health with itself. The move makes it a formidable player in the health segment and the third-largest non-life insurer. Earlier in 2016, HDFC Ergo had acquired L&T General Insurance and got a big chunk of the motor cover business in the country. The acquisition helped HDFC Ergo leapfrog from a 0.8% market share in 2008 to 6.2% in 2021.
