Premium collected by general insurance companies in the first seven months of the current financial year (2016-17) witnessed an impressive growth of 32%. Both public and private sector companies participated in the growth story and clocked exciting premium growths.
As per the data released by the General Insurance Council of India, rise in Gross Written Premium (GWP) collections from April to October for private sector companies was greater than public sector companies. While private sector companies clocked an impressive growth of 32.5%, public sector companies recorded a healthy growth of 27%.
A major reason behind the rise in premium collections is the healthy growth in motor insurance segment. If the current growth trend continues, the general insurance sector will surpass the growth of last financial year by a wide margin.
Interestingly, specialised general insurance companies like agricultural insurance companies recorded a tremendous growth of 75% during the same period in the last financial year. The premium in the health insurance sector also rose by 34% during the same period in the current financial year.
Enhanced premium collections is a good sign for the general insurance sector. Premium collection in this sector is expected to grow further as many insurance companies are planning to go public in the coming years.
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