Insurance is important! There’s no denying that in a country like India Insurance has been a game-changer in securing people’s life and valuables that can range from luxury items like cars, mobile phones to even businesses and expensive equipment. As a result, experts believed that the growth in Insurance market was here to stay and make a long run. However, the sudden slump in India’s GDP for a while and major shortage of demand has now cast a shadow over the future of the insurance industry as well.
In this blog, we’ll particularly look at the impact of the economic slowdown on the Non-Life Insurance Market in India. Even though slow down started in the high-ticket segments like real estate and automotive, it has had a cascading effect on the rest and consumption has significantly dropped. The motor insurance segment which has been the largest revenue contributor in the general insurance market is seeing a huge slump due to sales of cars dropping.
In this blog, we’ll particularly look at the impact of the economic slowdown on the Non-Life Insurance Market in India. Even though slow down started in the high-ticket segments like real estate and automotive, it has had a cascading effect on the rest and consumption has significantly dropped. The motor insurance segment which has been the largest revenue contributor in the general insurance market is seeing a huge slump due to sales of cars dropping.
Revenue generated by the premiums from the motor insurance segment contribute close to 38 per cent to the overall collection when compared to the various other segments, for the non-life insurance market in India. As per the analysts, in the June quarter, growth in the segment stood at around 4 per cent, with premium collection at Rs 15,724 crore against Rs 15,074 crore in the same period of FY19. This was the lowest growth in the last five quarters, starting from Q1FY19. This was reported by the Economic Times in their news article.
Gurneesh Khurana, president and country head (motor business), Bajaj Allianz General Insurance while speaking to Economic Times reporter for their story, he said “ Most of the manufacturers across private cars, two-wheelers, and commercial vehicles have shown continuous negative sales trend for the past few months. This slowdown has impacted motor insurance adversely, as insurance from new vehicles contributes a significant part.” Amidst all this, the upcoming festive season is what people are watching out for as sales generally pick-up during this time and it may help in curtailing the loss of profits to some extent.
Gurneesh Khurana, president and country head (motor business), Bajaj Allianz General Insurance while speaking to Economic Times reporter for their story, he said “ Most of the manufacturers across private cars, two-wheelers, and commercial vehicles have shown continuous negative sales trend for the past few months. This slowdown has impacted motor insurance adversely, as insurance from new vehicles contributes a significant part.” Amidst all this, the upcoming festive season is what people are watching out for as sales generally pick-up during this time and it may help in curtailing the loss of profits to some extent.
For More Information On This Report, Please Visit @ https://www.researchonglobalmarkets.com/non-life-insurance-market-in-india-2018-2023.html
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