ICICI Securities: Insurance Sector Check - Fire, Health Remain Growth Drivers, Rising Covid-19 Claims A Concern 
An applicant filling a form. (Photographer SeongJoon Cho/Bloomberg)

ICICI Securities: Insurance Sector Check - Fire, Health Remain Growth Drivers, Rising Covid-19 Claims A Concern 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Aggregate industry monthly non-life insurance premium grew 10% YoY in August 2020 driven by fire (29% YoY) and health premiums (25% YoY).

Motor segment saw gradual improvement as August 2020 gross direct premium income (GDPI) declined 2% YoY versus 6% decline in July 2020.

Media reports indicate that there have been 207,000 Covid-19-specific claims for an amount of Rs 33 billion till September 10, 2020.

Claims till end of August was Rs 27 billion which is approximately 12% of FY21-to-date health GDPI.

This rising Covid claims coupled with expected normalisation of non Covid claims can lead to hike in health premiums.

Our sample of 25 health insurance schemes of major general insurers for family floater polices (husband-age 35, wife and two children) with sum assured of Rs 500,000 - Rs 1 million indicate no price hike in FY21-to-date.

Click on the attachment to read the full report:

ICICI Securities General Insurance Segment Monthly.pdf

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