Irdai report: Non-life insurance companies’ claims settlement ratio fell to 82.52% in fiscal 2024

New Delhi, Dec 23 (PTI) Net incurred claims to net premiums earned (claims ratio) for the non-life insurance industry was 82.52 per cent in 2023-24, as compared to 82.52 per cent in the previous fiscal, according to Irdai’s annual report 82.95%.

According to the Insurance Regulatory and Development Authority of India (Irdai) Annual Report 2023-24, the total direct premium written by the non-life insurance industry during 2023-24 was $India 2.9 billion rupees, an increase of 12.76% over the previous year.

Contribution of public sector general insurance companies increased by 8.88% $82,891 Crore in 2022-23 $90,252 crore in 2023-24.

Private sector insurers, including independent health insurers, have underwritten $18.80 Lakhs Rs. $158 crore in 2022-23.

The total profit of the non-life insurance industry is $10,119 crore, net loss was $2,566 crore in 2022-23.

During 2023-24, total net claims increased by 15.39% to $172 Crores Rs. $149 Crores.

“The incurred claims ratio (ratio of net claims incurred to net premiums earned) for the non-life insurance industry was 82.52 per cent in 2023-24 as compared to 82.95 per cent in the previous year,” the report states.

In 2023-24, the claims settlement ratio of public sector insurance companies was 97.23% as compared to 99.02% in the previous year.

In 2023-24, the claims settlement ratios of private sector general insurance companies, independent health insurance companies and specialized insurance companies were 76.49%, 63.63% and 66.58% respectively, as compared to the ratios of 75.13%, 61.44% and 73.71% respectively in the previous year. %.

The report also stated that the total benefits paid by the life insurance industry were $57.7 trillion in 2023-24, accounting for 70.22% of net premiums.

Benefits paid due to surrender/surrender increased by 15.29% to $229 crore in 2023-24, of which public sector life insurance companies account for 58.36%.

A total of 18 life insurance companies reported profits in 2023-24. In 2023-24, the profit of the life insurance industry will grow by 10.79%, and the profit after tax (PAT) will be $47,407 Crores Rs. $42,788 crore in 2022-23.

In 2023-24, the profits of public sector life insurance companies increased by 11.75%, while the profits of private sector life insurance companies increased by 5.32%.

Irdai said the country’s insurance penetration stood at 3.7% in 2023-24, compared with 4% in 2022-23.

Insurance penetration in the life insurance industry declined slightly to 2.8% during 2023-24 from 3% in the previous year.

The penetration rate of the non-life insurance industry in 2023-24 will be the same as in 2022-23 at 1%.

As of March 31, 2024, there were 26 life insurance companies, 25 general insurance companies, 8 independent health insurance companies, 12 reinsurance companies and branches of foreign reinsurance companies, and 2 specialty insurance companies.