The general insurance industry had plunged to single digit growth of 9.3% at Rs 84,715 crore in 2014-15 from Rs 77,540 crore in 2013-14.
With double-digit growth back, the general insurance industry has set a target of crossing Rs 1 trillion mark in annual premium income this fiscal, up from Rs 84,715 crore in 2014-15.
The current fiscal got off to a good start with the industry netting Rs 9,400 crore in collective premium income in April this year, up by 12% over Rs 8,422 crore in April 2014, according to the General Insurance Council data.
The industry consists of four state-owned, 17 private, five standalone health insurers and two specialised insurers.
The general insurance industry had plunged to single digit growth of 9.3% at Rs 84,715 crore in 2014-15 from Rs 77,540 crore in 2013-14.
FY15 growth was the lowest in past three years.
"I do hope that the industry will close the annual premium income in the current fiscal by crossing Rs 1,00,000 crore mark," General Insurance Council secretary general R Chandrasekaran told PTI.
"April is the month when most businesses get renewed. Due to hike in third-party motor premium and increase in fire and property premia, corrections are taking place in premium prices now," he said, adding "the ongoing Pradhan Mantri Jan Dhan Yojana will also help increase premium collection."
The four state-owned general insurers mobilised around Rs 4,940 crore in April 2015, up 10.5% from the year-ago period, while the 17 private sector players grew their premium by almost 12% to Rs 4,073 crore in the same period.
The five standalone health insurers saw their total premium increase by a whopping 50% to Rs 255 crore in April 2015 against Rs 172 crore in the same month of previous year.
"With economic activity picking up with stalled projects getting back on stream as well as new projects coming up, I do hope that the current fiscal will be a bright year for the industry and we will be able to achieve Rs 1,00,000 crore during the current fiscal," Oriental Insurance Company chairman and managing director A K Saxena said.
New India Assurance chairman and managing director G Srinivasan also sounded sanguine about growth saying, "I do see 14-15% growth in the current fiscal. The growth drivers are likely to be the mandatory third party motor premium due to their revised rates by the Irda and expected higher premia in property and fire lines."
United India Insurance, which had closed 2014-15 with a total premium income of Rs 10,692 crore, is looking at achieving a growth of more than 12% at Rs 11,800 crore during the current fiscal.
"I also hope that the industry will be able to cross Rs 1,00,000 crore during the current fiscal which will be driven by health and motor insurance.
"While health insurance premium was growing by 20%, motor insurance was growing by 11-12% during the current fiscal so far over last fiscal," United India Insurance CMD Milind Kharat said.
"At United India Insurance, we are looking at achieving the growth in total premium income by over 12% during the current fiscal at Rs 11,800 crore against Rs 10,692 crore in 2014-15," Kharat added.
After recording negative growth for almost whole of 2014-15, specialised insurers like Agriculture Insurance Company and Export Credit Guarantee Corporation have recorded positive growth of 8% in April 2015, the GIC data showed.
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