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According to IRDAI Report Claims Ratio of Non-Life Insurers Declines to 82.5% in FY24and Insurance Penetration at 3.7%.

Banking & Finance | Dated: 29 Dec 2024

According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (IRDAI), the claims ratio (net incurred claims to net earned premium) of the non-life insurance industry decreased to 82.52% in the Financial Year 2023-24 (FY24), down from 82.95% in FY23.

🎯 Key Highlights:

  • - The report revealed that the non-life insurance sector in India underwrote a total direct premium of Rs 2.90 lakh crore during FY24, marking a growth of 12.76% compared to the previous year. This growth is primarily driven by increased health and motor insurance premiums from individuals.
  • - India's insurance penetration stood at 3.7% in FY24, a decline from 4% in FY 2022-23.

💡 Other Important Facts:

  • (i) The report highlighted that the contribution of public sector general insurers increased by 8.88%, rising from Rs 82,891 crore in FY23 to Rs 90,252 crore in FY24.
  • (ii) Private sector insurers, including standalone health insurers, underwrote Rs 1.88 trillion in FY24, compared to Rs 1.58 trillion in FY23.
  • (iii) The report highlighted that life insurance companies paid a total of Rs 5.77 lakh crore in benefits in FY24, which accounted for 70.22% of the net premium.

📚 Test Your Knowledge:

What is the current insurance penetration in India as per the IRDAI Report for FY24?

Correct Answer: 3.7%

🚀 Quick Recap:

About IRDAI

  • Chairperson : Debasish Panda, IAS
  • Headquarters: Hyderabad