The insurance regulator, IRDAI, has given aspirational targets to non-life insurance industry, only days after doing the same for life insurance companies. The aim is to increase the general insurance penetration to 2.52 per cent by FY27 from the current 1 per cent as of FY21, Business Standard reported.
The regulator wants to increase the general insurance premiums to ₹11.7 trillion by FY27 from ₹2.2 trillion as of FY22. In FY22, the non-life insurance industry premiums grew by just 11 per cent over the previous year, data put out by the regulator showed.
“The regulator has a vision to see the general insurance market growing from ₹2 trillion to over ₹11 trillion, and as a result increase the general insurance penetration. To achieve this, they are looking at making a lot of regulatory changes,” a private sector general executive, who is aware of the development was quoted in the report as saying.
All non-life insurance companies, including private sector general insurers, public sector general insurers, standalone health insurers, and specialised general PSU insurers, have been growth targets for the next five years.
Some large companies such as ICICI Lombard, HDFC Ergo, Bajaj Allianz General are given premium growth targets of 40 per cent, 38 per cent, and 38 per cent, respectively, for the next five years.
While public sector insurers have been asked to increase their premiums by 25 per cent every year, private sector general insurers have been given a premium growth target of over 40 per cent every year. On the other hand, standalone health insurers have been given premium growth targets of over 48 per cent every year, the report said.
Earlier, Irdai had proposed premium growth targets over a five-year period for life insurance companies, in a bid to double insurance penetration in the country.