General insurers hope to maintain growth momentum in 2017-18
Kolkata: After registering a 21.95 percent growth in gross direct premium underwritten in the first quarter of current fiscal, the general insurance industry is expecting to maintain its growth momentum in 2017-18, a top official of a public sector insurer said here on Saturday.
"The first quarter has been good for the general insurance industry and we are confident that going forward, we would be able to maintain the growth momentum this year," National Insurance Co. Ltd's Chairman and Managing Director K. Sanath Kumar said.
"The industry believes that a 20 percent growth can be sustainable even in the coming years," he said.
Kumar said digitisation of database of insurance companies, linking of insurance policies with common identifiers such as Aadhaar, vehicle registration number, etc., would be attributed to the growth momentum.
According to him, the focus of the central government on crop insurance and growing flow of household savings into financial assets would contribute to the growth.
As many as 30 non-life insurers have posted a gross direct premium of Rs 33,302.89 crore in the first three months of the current fiscal as compared to Rs 27,309.59 crore in the same period last year, according to a provisional data compiled by the Insurance Regulatory Authority of India (IRDAI).
Public general insurers have the market share of 50.64 percent, while the private players have 49.36 percent.
Given the absolute lack of safety nets, government should not be taxing ordinary households and small proprietorships at all.
Households need to be incentivised for enhancing financial savings, Chief Economic Advisor Raghuram G Rajan said today.
The government should focus more on creating awareness on crop insurance with farmers through training about the benefit of the scheme at Krishi Vikas Kendra and rural NGOs