THE INDIAN

INSURANCE
INDUSTRY – FY 20
Dear Friends,
Welcome to a digital only edition of The Insurance Industry Report. While this is the 1st digital only edition, it is the 11th edition
of our Report.
The pandemic has left its impact on all of us in one way or the other. The lock downs & ‘Work from home’ orders have led to
delays in release of the financials of all the insurers which has consequently led to a very delayed released of this report as
well. We do hope this is still in time for you to get an overview of where the market is headed, and the impact the recent rate
changes have had on the market.
What began as a health issue in one country, soon became a global pandemic. It has had long lasting impact on the economies
across the globe, affecting various sectors adversely. While the insurance industry world over has been impacted adversely by
major losses w.r.t business interruption losses , India has been insulated by the same and has seen limited losses. The health
insurance segment though has seen growth with many customized policies being launched.
Technology and Digitalization of the operations has been the game changer across all sectors during the pandemic and the
insurance industry is no exception. The current crisis has led the insurance companies to depend heavily on digitalization for all
their operations and not just the insurance distribution process.
As FY 2020 draws to a close, we hope and pray to see a more healthy, successful and economically stable environment across
the globe.
We look forward to receiving your feedback on the new format of the report.
Wishing you all the very best for a wonderful and healthy New Year 2021!
Team India Insure
India Insure Risk Management & Insurance Broking Services Pvt. Ltd

2
  Key Highlights

 Insurance Industry – Key Statistics

CONTENTS  General Insurance - Key Statistics

 Reinsurance – Key Statistics

 Annexures

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KEY HIGHLIGHTS
❑ The Insurance Industry crossed the USD 100 Bln mark for FY 20 with the Life Industry contributing USD 75 Bln & the Non-Life Insurance
Industry contributing USD 25 Bln
❑ While the Life Insurance Industry has shown an almost 13% growth , the Non-Life Insurance Industry has grown at approx. 12%
❑ Property insurance grew by 35% as a result of the pricing improvements brought about earlier in the year.
❑ Underlying prices have seen almost a 60 to 70% increase
❑ Property Insurance Claims ratio for FY 19 was at 90% and the same is expected to improve considerably for FY 20 given the improved
premiums.
❑ The segment to show the 2nd largest growth for FY 20 was aviation with a 24% growth. This has largely been due to the significant
increase in losses over the past 5 years.
❑ With respect to agriculture insurance, AICI is the only insurer that has seen a 32% increase. However, not so much with other insurers. In
fact, many of the insurers have moved out of the crop insurance market leading to increasing prices and reduced capacities.
❑ PSU:PVT market share stands at 44% : 56% respectively
❑ Motor & health have seen a sharp decline in the PSU market share; however, they have seen an increased share in the aviation line.
❑ Customized and tech driven distribution has helped the PVT insurers in enhancing their market share in the motor and health
segment.

❑ Foreign reinsurers share has dropped by 2% since last year and GIC share has gone up from 80% to 82%

❑ Munich Re & Swiss Re have 6% and 5% market share of the Indian Reinsurance business. Both have had an increase in their Motor
portfolio from last year in addition to the Misc. line of business.

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KEY HIGHLIGHTS
 FY 21 has started off as a challenging year with the Impact of lockdown being a de-growth of 4.24% on overall Non-Life premiums in
the first quarter however towards the end of 3rd quarter the growth rate is in line with FY 20

 Property , Aviation & Health are the three lines of business who have shown a good growth rate of 33%, 22% and 15% respectively.

 The Aviation line did have a bumpy start with an 18% de-growth however, the rate increase on renewals towards the later half
have made an impact on the overall book.

 Gaps in health covers have led to new product launches specific to treatment of COVID-19

 Impact of a challenging fiscal year end and historical losses led to

 Rating downgrade of GIC Re & New India Assurance.

 AM Best rating withdrawal for United India Insurance

 While the merger of the 3 PSU insurers has been called of, M&A has been active among the private insurers - Bharti Axa general
Insurance has been acquired by ICICI Lombard

 Capital infusion allocated by the government for the three PSU companies is to the tune of 124.5 Bln INR of which INR 35 Bln has
been given as the 1st tranche

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Indian Insurance Industry
– Key Statistics

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INSURANCE FACT SHEET

• INSURANCE BROKERS: 459 • INSURERS • MARKET SIZE

• THIRD PARTY ADMINISTRATORS:
24
• WEB AGGREGATORS: 24
• INSURANCE MARKETING FIRMS:
278
• SURVEYORS:
Total Loss Adjusters: 10,048
Individual: 9, 472
Corporates: 168
Life: • Life: INR 572,916 Cr. ($ 76 Bn.)
Govt.: 1; Pvt.: 23 • General: INR 189,302 Cr. ($ 25 Bn.)
• Combined: INR 762,218 Cr. ($ 101
Non-Life: Bn.)
Govt.: 6; Pvt.: 21; Pvt. SHI: 7
• DENSITY
• REINSURERS • Life: INR 4387.12 ($ 58)
Indian: Govt.: 1 • General: INR 1437.16 ($ 19)
Foreign Branches: 10
• PENETRATION
• Life: 2.82 %
• General: 0.94%

INDUSTRY INDUSTRY STATISTICS

INTERMEDIARIES COMPOSITION

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 PREMIUM GROWTH CHART

Insurance Industry Premium (INR Crore) Insurance Industry Premium Growth Chart (USD Bn.)
9,00,000 120

8,00,000
100 101
7,00,000 7,62,218
89
6,77,932
6,00,000 80 81
6,09,517 76
5,72,916 72
5,00,000 5,45,699 67
5,08,132 60 62
4,00,000 4,63,299 4,58,809 61
4,18,487 55
49
3,00,000 3,66,923
40

2,00,000

1,69,800 1,89,302 20 25
1,00,000 1,50,708 20 22
1,27,212 17
96,376 13
0
0
FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20
Non- Life Life Total Non- Life Life Total

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INSURANCE DENSITY & PENETRATION
Insurance Density in India
(Premium per capita in USD) Insurance Density
(Premium Per Capita in USD)
7,495
58.0 8,000
55 54.0 7,000
55
47 6,000 4,872
43 4,361
5,000 3,621
4,000 2,702
3,000
2,000
21 1,000 77 52 76 82 156 351 390 431 536
18 19.0 19.0
12 13 0

Malaysia
Australia
Vietnam

Indonesia

Brazil
Sri Lanka

Russia

US
UK
Thailand

Singapore
PR China

Japan
9

India
8
4
2

2000 2005 2010 2015 2016 2017 2018 2019

General Insurance Density Life Insurance Density

Insurance Penetration in India Insurance Penetration

(Premium as % of GDP) (Premium as % GDP)
11.4 10.3
4.4%
9.0
7.6
3.0% 2.7% 2.8% 2.7% 2.8%
2.7%
5.0 5.0
4.7
3.8 4.0 4.3
1.6%
2.0 2.2
1.3 1.3
0.8% 0.9% 1.0% 0.9%
0.5% 0.6% 0.7% 0.7%

Malaysia

Australia
Indonesia

Vietnam

Brazil
Sri Lanka

Thailand
Russia

US

UK
Singapore
PR China

Japan
India
2000 2005 2010 2015 2016 2017 2018 2019 9
General Insurance Penetration Life Insurance Penetration
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 General Insurance
Industry –
Key Statistics

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 FY 2020 - PREMIUM GROWTH
Premium Growth - Last 5 years
2,00,000 35.00%
Annual Industry Growth: 12% 33.0%
1,80,000
• Health: 4% 30.00%
• Motor: 3% 1,60,000
• Misc..: 3% 25.00%
1,40,000

1,20,000
20.00%
1,00,000 17.5%

13.8% 12.5% 15.00%

80,000

60,000 10.00%
March 2020 de-Growth – (8.6)% 11.7%
• PA (54)% 40,000
• Health: (11)% 5.00%
20,000
• Motor: (8)%
• Misc..: ( 6)% - 0.00%
FY 16 FY 17 FY 18 FY 19 FY 20

Non-life Premium (in INR Crs.) Growth %

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 INSURER PERFORMANCE
Non-Life Market Share PSU Vs. Pvt.
Premium Growth %
PSU
80% Growth
Rate
70% 8.9%
60% (vs -0.2%) 46% 47% 49%
55% 56%
50%
40%
30% PVT
Growth
20% rate 14%
10% (vs 26%) 54% 53% 51%
45% 44%
0%
FY 16 FY 17 FY 18 FY 19 FY 20
-10%
-20%
SHI
Growth FY 16 FY 17 FY 18 FY 19 FY 20
Rate 27%
PSU PSU (Specialized) Pvt. Pvt. (Health) (vs 37%) PSU PVT

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 INSURER PERFORMANCE

Health Insurance Market Share Classification of Health Insurance Business

44% 42% 42% 41% 39%

52% 48%
57%

24% 27% 48%

21% 44% 48% 48% 48%

22% 24% 25%

12% 10% 10% 11% 13%

FY 18 FY 19 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19

PVT STAND-ALONE PSU Govt Business Group Business Individual Business

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 LINE-WISE MARKET SHARE
100%
90% 44% 48% 54% 37% 48% 79% 21% 32% 25% 55%
56% 52% 46% 63% 52% 68% 75% 45%
80%
45% 55% 41% 52% 34% 31% 47%
70% 49% 75% 25%
55% 51% 45% 59% 66% 69% 53%
48%
60%
48% 50% 57% 47% 57% 36% 35% 56%
50% 74% 26% 64% 65%
52% 50% 43% 53% 44%
43%
40%
53% 55% 64% 47% 62% 39% 57%
30% 77% 39% 61%
47% 45% 53% 23% 61%
36% 38% 43%
20%
10% 56% 58% 67% 47% 63% 79% 39% 61% 31% 69% 69%
44% 42% 33% 53% 37% 21% 31%
0%
PSU PVT PSU PVT PSU PVT PSU PVT PSU PVT PSU PVT PSU PVT PSU PVT PSU PVT
Fire Marine Engg Motor Health Aviation Liability P.A Other
FY 16 FY 17 FY 18 FY 19 FY 20

PSU loss: Pvt. Loss:

6% Personal Accident PSU gain:
8% Other Misc. Pvt. Gain:
8% health & Motor 4% Aviation
4% Aviation 6% PA
8% Other Misc.
4% Health & Motor 14

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 NON-LIFE INSURANCE INDUSTRY - COMPOSITION & RATINGS

Financial Strength/
Company
Claims Paying Ability Rating
A-(Excellent) AM BEST
New India*
AAA (Stable) CRISIL
C++ (Marginal) StableAM Best
United India
AAA (Negative) CRISIL
National AA/(Negative CRISIL

iAAA; Reaffirmed ICRA

Oriental
AAA Stable (Reaffirmed) CRISIL
Bajaj Allianz iAAA: (Reaffirmed) ICRA
ECGC iAAA: (Reafiirmed) ICRA
HDFC ERGO iAAA: (Reaffirmed) ICRA
ICICI Lombard iAAA: (Stable) ICRA
IFFCO Tokio AA(Stable) CRISIL
SBI General iAAA: (Reaffirmed) ICRA
Tata AIG General iAAA: (Reaffirmed) ICRA
Aditya Birla Health iAAA; (Stable) ICRA

*Note: Revised ratings as on 20th July 2020: 15

AM Best has downgraded the financial strength rating of New India
Assurance Company Ltd -to B-double plus (good) from A-minus (excellent)
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 SEGMENT WISE – PREMIUM GROWTH

80,000 40%

36% 35% o The Personal Accident is the only segment

70,000
which has recorded a de-growth.
30%
60,000 o Companies with over 20% de-growth in
25% this line:
50,000 13%
20%
▪ DHFL General: -75%
24%
▪ Shriram General: -62%
40,000 13% 15%
▪ Oriental: -62%
30,000 10% 10% ▪ Tata AIG: -60%
9% 7%
7% 5% ▪ Manipal Cigna: -48%
20,000 ▪ Acko General: -42%
0%
▪ New India: -34%
10,000 -4% -5% ▪ IFFCO-Tokio: -28%
- -10% ▪ HDFC ERGO Health: -24%

FY 19 FY 20 Growth %

16

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 SEGMENT-WISE GROWTH PSU Vs. Pvt.

100%

80%

60%

40%

20%

0%
PSU Pvt PSU Pvt PSU Pvt PSU Pvt PSU Pvt PSU Pvt PSU Pvt PSU Pvt PSU Pvt
-20% Fire Marine Engg Motor Health Aviation Liability PA Others

-40%

-60%

-80%
FY 16 FY 17 FY 18 FY 19 FY 20

17

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 SEGMENT-WISE INSURANCE BUSINESS-MIX

FY
9% 3% 2% 44% 26% 2% 3% 11%
16

FY
7% 2% 2% 39% 24% 2% 3% 21%
17

FY
7% 2%1% 39% 25% 1% 3% 21%
18

FY
7% 2%1% 38% 27% 1% 3% 20%
19

FY
8% 2%1% 37% 27% 1% 3% 20%
20

18
Fire Marine Engineering Motor Health Liability PA MISc.
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 TOP 5 INSURERS-SEGMENT WISE
(Figs. In INR Cr)

OIC, 1,336 TAIG, 312 OIC, 216 HDFC E, 258 OIC, 2,457
ICICI L, 6,788 Star, 6,862

OIC, 364 ICICI L, 314

ICICI L, 1,550 TAIG, 361
BAGIC, 5,231 OIC, 4,855
AIC , 9,538
NIC, 250
BAGIC, 1,226 ICICI L, 485
NIC, 5,737 ICICI L, 422 NIC, 5,435

UIC, 1,560 UIC, 394

UIC, 351
UIC, 5,863
UIC, 6,543
BAGIC, 327 BAGIC, 3,167

UIC, 2,535
NIA, 3,063 NIA, 736 NIA, 563
NIA, 8,924 NIA, 9,746
NIA, 466
NIA, 2,949

FIRE MARINE ENGG. MOTOR LIABILITY HEALTH + PA MISC.

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 CLAIMS RATIO – INSURERS > 10 YEARS IN OPERATION
UNITED INDIA 88% 107% 94% 109% 101%

N ATIONAL 95% 97% 114% 110% 106%

FUTURE G ENERALI 81% 77% 76% 69% 60%

SHRIRAM 101% 103% 94% 68% 65%

STAR H EALTH 54% 61% 62% 63% 66%

B AJAJ A LLIANZ 72% 70% 67% 69% 71%

IC IC I - L OMBARD 81% 80% 77% 75% 73%

UNIVERSAL SOMPO 71% 71% 56% 70% 73%

C HOLA 72% 73% 73% 77% 75%

RQBE 25% 69% 76% 83% 75%

HDFC ERGO 73% 78% 74% 76% 77%

TAIG 77% 72% 71% 78% 77%

BHARTI AX A 93% 87% 83% 77% 78%

R ELIANCE 89% 92% 85% 86% 84%

R OYAL SUNDARAM 78% 78% 80% 85% 85%

ITGI 79% 82% 83% 88% 89%

N EW INDIA 88% 91% 86% 95% 91%

ORIENTAL 84% 112% 85% 106% 102%

ECGC 102% 121% 136% 134% 115%

AIC 100% 120% 102% 92% 115%

FY 16 FY 17 FY 18 FY 19 FY 20
20

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 CLAIMS RATIO –STANDALONE HEALTH INSURERS & SPECIALIZED PSU’S

Standalone Health Insurers - Claims Ratio Specialized Insurers - Claims Ratio

HDFC Ergo Health 65% 55% 62% 63% 74%

ECGC 102% 121% 136% 134% 115%

Star Health 54% 61% 62% 63% 66%

Manipal Cigna 79% 50% 46% 62% 62%

Religare 57% 51% 52% 55% 59%

Max Bupa 60% 52% 50% 54% 54% 100% 120% 102% 92% 115%
AIC

Aditya Birla 123% 90% 59% 49%

FY 16 FY 17 FY 18 FY 19 FY 20
FY 16 FY 17 FY 18 FY 19 FY 20

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 HEALTH CLAIM TRENDS

Health Claims Trend (INR Crore) Health Insurance - Breakup of Claims Ratio

40,000 102%
SHI 51% 53% 56%

Individual
101% 100%
35,000 PSU 101% 89% 89%
98%
Pvt. 64% 56% 54%
30,000
96%
56% 56% 57%

Family Floater
SHI
25,000
94%
PSU 87% 87% 92%
20,000 92% 92%
Pvt. 65% 70% 73%
90% 76% 85% 78%
15,000 89% SHI

Group
88% 138% 116% 115%
10,000 PSU
86% 92% 85% 91%
Pvt.
5,000
84% 55% 98% 182%
SHI
0 82%

Govt.
PSU 124% 116% 86%
FY 17 FY 18 FY 19
Pvt. 115% 109% 93%
Net Premium Net Incurred Claim Claims Ratio

FY 17 FY 18 FY 19

22

Note: Information on slides 22 to 24 are based on information available in the IRDAI Hand Book. The data is available only up to the preceding Year and hence FY 20 data will not be
available.
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 LINE WISE CLAIMS RATIO

Claims Ratio - FY 19 90% 84% 91% 89% 83%

Claims Ratio - FY 18 82% 65% 83% 92% 79%

Claims Ratio - FY 17 84% 75% 88% 101% 82%

Fire Marine Motor Health Misc

23

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 LINE WISE - CLAIM TRENDS

Fire Claims Trend (INR Crore) Marine Claims Trend (INR Crore)
6,000 90% 100% 2,500 90%
84% 82% 84%
75% 80%
80% 2,000 70%
4,500 65%
60%
60% 1,500
50%
3,000
40% 40%
1,000
30%
1,500
20% 500 20%
10%
0 0% 0 0%
FY 17 FY 18 FY 19 FY 17 FY 18 FY 19
Net Premium Net Incurred Claim Claims Ratio Net Premium Net Incurred Claim Claims Ratio

Motor Claims Trend (INR Crore) Misc. Claims Trend (INR Crore)
60,000 92% 16,000 84%
91% 90% 14,000
50,000 83%
88% 88% 12,000 82% 82%
40,000
86% 10,000
30,000 8,000 80%
84%
83%
20,000 6,000 79%
82%
4,000 78%
10,000 80%
2,000
0 78%
0 76%
FY 17 FY 18 FY 19
FY 17 FY 18 FY 19
Net Premium Net Incurred Claim Claims Ratio
Net Premium Net Incurred Claim Claims Ratio 24

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 KEY INDUSTRY RATIOS - COMBINED & SOLVENCY RATIOS
Combined Ratio (%) - FY 20
250%

200%

150%

100%

50%

0%

o HDFC Ergo Health –

Erstwhile Apollo Munich
Solvency Ratio (%)- FY 20 o NAVI – Erstwhile DHFL
16.00 o Reliance Health – Merged
14.00
with Reliance General
12.00
10.00
8.00
6.00
4.00
2.00
0.00

25

Back to Content Note: The trend line indicates the industry average for the Combined ratios & the Regulatory Requirement for the Solvency ratios
 PROFIT AFTER TAX
Profit after Tax FY 18 to FY 20 (INR Crore)

2500
FY 18
2000
FY 19
1500 FY 20
1000

500

0
New ICICI Bajaj Shriram HDFC SBI TAIG ECGC Star Reliance ITGI AIC Universal Chola FG Religare RSA
-500 India Lombard Allianz Ergo MS

Profit after Tax FY 18 to FY 20 (INR Crore)

2000
FY 18
1000
FY 19
0
-1000 FY 20
-2000
-3000
-4000
-5000
Magma Kotak Max Raheja Navi Edelweiss Liberty Manipal HDFC Go Digit Acko Aditya Bharti Oriental United National
HDI Bupa QBE Cigna Ergo Birla Axa India
Health
26
HDFC Ergo Health – Erstwhile Apollo Munich
NAVI – Erstwhile DHFL
Reliance Health – Merged with Reliance General Back to Content
 PROFIT AFTER TAX – TOP 5 COMPANIES
(Figures in IN Cr)

OIC, 300 AIC , 324 AIC , 440 HDFC E, 448

UIA, 1,003

AIC , 307 Shriram, 741

Shriram, 663
BAGIC, 728
OIC, 1,510

BAGIC, 564 BAGIC, 999

BAGIC, 780
BAGIC, 921
ICICI L, 702
ICICI L, 507 ICICI L, 1,194
ICICI L, 862

ICICI L, 1,049

NIA, 829 NIA, 1,008 NIA, 2,201

NIA, 1,418
NIA, 580

FY 16 FY 17 FY 18 FY 19 FY 20

HDFC Ergo Health – Erstwhile Apollo Munich

NAVI – Erstwhile DHFL
Reliance Health – Merged with Reliance General
27

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 INVESTMENT INCOME Vs. UNDERWRITING PROFIT / LOSS

100%

80%

60%

40%

20%

0%

-20%

-40%

-60%
PSU Sp. PSU PVT SHI PSU Sp. PSU PVT SHI PSU Sp. PSU PVT SHI PSU Sp. PSU PVT SHI
FY 16 FY 17 FY 18 FY 19

Investment Income Underwriting loss

28

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 NON-LIFE INSURANCE – DISTRIBUTION CHANNELS
Channel Mix Across Insurers
Distribution Channel Mix
5% 3.4% 5.3%
11% 12.5% 14.9%
FY 20 10%
27% 28.4% 25.9%
26%
26.7%
28.3% 27%
7%

28%
20% 28% 30.0% 31.3%
18.7%
17.3% 27% 28%
4% 4.1%
4.9%
FY 19
19% 18.1% 17.1%
12%
39% 38.1% 12%
34.7%
25%
21% 20.2% 20.4%

25%
PSU PVT PSU PVT PSU PVT
FY 18 FY 19 FY 20

Individual Agents Corporate Agents Brokers Direct Business Others Individual Agents Corporate Agents Brokers Direct Business Others
29

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 Indian Reinsurance
Key Statistics

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 REINSURANCE INDUSTRY - COMPOSITION

The following is the list of reinsurers licensed to conduct

business “on-shore”:

INDIAN:
o GIC RE

FOREIGN REINSURANCE BRANCHES

o Munich Re
o Swiss Re
o Scor Re
o Hannover Re
o RGA Life Reinsurance
o XL Reinsurance Company
o General Insurance AG
o Axa France
o Allianz Global Corporate & Specialty SE, India Branch
o Lloyds India Branch –
-MS Amlin
-Markel Services India Private Limited)

The graph indicates the no. of reinsurers who are registered with
IRDAI and authorized to do business in India

31

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 REINSURANCE INDUSTRY
KEY FINANCIALS OF REINSURERS (INR Crore)
Hannover
Year GIC Re Allianz SE AXA Re Munich Re SCOR Re Swiss Re XL Catlin Lloyds
Re
Prem on Reinsurance Accepted 2019-20 51,030.13 249.80 1,559.48 1,248.30 3,822.75 1,550.55 2,908.90 479.61 15.58
2018-19 44,237.99 102.27 2,461.60 933.10 2,285.08 1,571.77 2,275.42 324.49 1.19
Net Premium Income 2019-20 46,655.41 81.9 1,126.35 692.15 2,204.34 844.01 1,790.81 371.6 15.58
2018-19 38,995.97 59.77 2,443.84 538.15 1,393.95 848.6 1,228.38 248.42 1.19
Net Earned Premium 2019-20 44,145.43 92.52 1,565.87 642.84 1,746.45 832.88 1,357.88 342.97 11.01
2018-19 37,679.08 22.05 2,173.55 474.59 1,078.17 733.36 1,241.74 243.72 0.31
Net Claims Incurred 2019-20 43,035.86 79.54 1,528.06 580.11 1,373.39 -683.5 1,211.88 330.65 5.39
2018-19 33,739.95 14.98 1,903.51 465.59 855.57 -749.75 1,087.21 196.23 0.17
Commission, Expenses of Management
2019-20 7,881.36 28.4 30.63 129.3 548.59 -154.9 315.6 20.8 7.2
& Other Charges
2018-19 6,361.48 33.2 135.53 75.1 344.23 -174.1 83.85 24 3
Increase in Reserves for Unexpired
2019-20 -2,509.98 -10.63 439.52 -49.31 457.89 -11.13 432.93 -28.63 4.2
Risks
2018-19 -1,316.89 37.72 -270.29 -63.56 315.78 -115.24 -13.37 -4.7 0.89
Investment Income & Profit Less Outgo
2019-20 5,558.61 4.1 13.28 0 76.37 50.2 51.4 7 0
(From Revenue A/c)
2018-19 4,632.67 0 3.94 0.4 58.45 56.2 45.63 5.3 0
Operating Profit / Loss 2019-20 -808.57 -5.84 27.23 -66.13 -92.49 51 -119.39 -37.7 -1.6
2018-19 2,421.21 -22.91 128.07 -49.22 -58.22 -140.23 122.4 11.5 -2.9
Investment Income & Profit Less Outgo
2019-20 1,566.88 5.2 70.6 71.8 89.33 49.9 43.4 9 0
(From Profit & Loss A/c)
2018-19 1,768.67 0 41.43 37.2 52.18 36.2 42.9 8.6 0
Profit Before Tax 2019-20 -445.97 -1.92 92.24 3.24 -6.96 98.5 -79.94 -30.56 -1.57
2018-19 3,433.82 -22.93 164.25 -16.97 -8.51 -106.65 159.96 20.58 -2.89
Profit After Tax 2019-20 -359.09 -1.92 51.95 3.24 -11.51 82.64 -81.17 -31.43 -1.57
2018-19 2,224.31 -22.93 92.38 -16.97 -5.99 -106.65 88.01 15.56 -2.89
Combined Ratio 2019-20 1.14 1.21 1 1.03 1.04 1 1.12 1.15 0.95
2018-19 1.06 1.23 0.93 1 1.04 1.23 0.9 1 3.1 32
Solvency Ratio 2019-20 1.53 2.75 2.04 1.92 1.92 2.66 1.81 1.59 2.05
2018-19 2.06 2.78 1.63 1.97 1.94 2.16 1.71 2.59 2.03
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 REINSURANCE INDUSTRY

Channel Mix Across Reinsurers

Direct Business Brokers

22% 19%
31% 32%

78% 81%
69% 68%

Indian FRB's Indian FRB's

FY 19 FY 20 33

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 REINSURANCE INDUSTRY

FRB - Profit After Tax (INR Crore)

150.00

100.00

50.00

0.00
Allianz SE AXA Re Hannover Re Munich Re SCOR Re Swiss Re XL Catlin Lloyd's

-50.00

-100.00

-150.00

FY 19 FY 20
34

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 REINSURANCE INDUSTRY - Business Composition
FY 19 3% 2% 1%
5% 1%
4% 13% 8%
4% 4% 14%
20% 3% 2%
6%
57% 22%
45%
23%
54% 74% 1%
67% 2%
99% 10%
0%
2% 65% 5% 32%
1% 1%
28% 5%
3%
2%
41% 2% 41%
2% 28% 1%
19% 25% 21%
15% 2%
8%
1%
Allianz Se AXA Re Hannover Re Munich Re SCOR Re Swiss Re Lloyds XL Catlin GIC Re
Fire Engineering Marine Misc. Other Life Aviation Motor Health + PA Liability WC
FY 20
1% 3% 0.2% 4% 1% 5% 1%
5% 8%
22% 6% 15%
9% 18% 0%
3% 21%
2% 0
6% 20%
2% 31% 49% 6% 64%
57% 2%
2%
98% 64%
8% 34%
1%
69% 55%
3%
31% 4%
2%
35% 35%
5% 27%
21% 35
12% 9% 5%
Allianz Se AXA Re Hannover Re Munich Re Scor Re Swiss Re Lloyds XL Catlin GIC Re
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 REINSURANCE INDUSTRY
Line Wise Claims Ratio - FY 20

60%
77%
71%

98%
51% 75%
766% 65% 67% 92%
76% 60% 59%
95% 78% 66% 87%
59% 144%
97% 70% 115%
87%
184% 120% 81%
85% 120% 80% 100%
90%
90% 83% 84% 129% 113%
132% 93% 101%
95% 93% 199% 132% 103% 22% 71%
75% 122%
64% 85% 49% 95% 73% 121% 95%
37%
87% 90% 108% 102% 71% 65% 69% 87% 90%
-11% 18%
-203%

Allianz Se AXA Re Hannover Re Munich Re SCOR Re Swiss Re Lloyd XL Catlin GIC Re

Fire Engineering Marine Misc. Other Life Aviation Motor Health+PA Liability WC 36

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 REINSURANCE INDUSTRY
Line Wise Claims Ratio - FY 19

95%

99%
60%

574%

95%
98%

77%
1063% 82% 71%
80% 65%
95% 23%
65% 56% 87%
57% 69% 85%
87% 70% 61% 63% 59%
89% 77% 173% 118%
120% 90% 87%
87% 71% 69% 122%
63% 89% 96% 104% 94% 90% 87%
95% 283% 59% 65% 88% 256% 67%
185% 85% 98% 94% 78% 62%
90% 92% 113% 51% 103%
66% 86% 88% 71% 73%

-27%

Allianz Se AXA Re Hannover Re Munich Re SCOR Re Swiss Re Lloyd XL Catlin GIC Re

37
Fire Engineering Marine Misc. Other Life Aviation Motor Health+PA Liability WC

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 REINSURANCE INDUSTRY

NET RETAINED PREMIUM ON INDIAN BUSINESS ( % OF GDP) ( EXCL. GIC)

FY 19 34.78% 66.78% 33.09% 87.82% 45.41% 14.57% 60.26%

FY 18 26.77% 68.35% 13.78% 87.99% 42.76% 3.70% 59.06%

FY 17 44.40% 72.35% 11.48% 88.04% 50.46% 21.54% 64.01%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fire Marine Cargo Marine Hull Motor Engineering Aviation Miscellaneous

38

Note: Information on slides 38 to 42 are based on information available in the IRDAI Hand Book. The data is available only up to the preceding Year and hence FY 20 data will not be Back to Content
available.
 REINSURANCE INDUSTRY
NET RETAINED PREMIUM - PSU INSURERS ( EXCL. GIC)
100%
90% 69.79% 62.66% 64.77%

80% 9.59% 1.96% 14.96%

63.86% 62.57% 62.95%
70%
60%
50% 89.23% 87.71% 90.05%

40% 11.57% 18.12% 38.71%

30%
83.04% 83.06%
20% 77.00%

10% 60.72% 45.59% 47.49%

0%
FY 17 FY 18 FY 19

Fire Marine Cargo Marine Hull Motor Engineering Aviation Miscellaneous

NET RETAINED PREMIUM - PVT INSURERS

100%
55.58% 53.82% 56.09%
80% 13.02%
54.91% 8.41%
16.65% 23.98%
60% 25.20%

88.24% 86.29%
87.00%
40%
10.26% 2.93%
20% 63.12% 60.58%
6.72% 57.32%
25.47% 24.47%
0%
FY 17 -0.37% FY 18 FY 19
-20% 39

Back to Content Fire Marine Cargo Marine Hull Motor Engineering Aviation Miscellaneous
 REINSURANCE INDUSTRY

Retention Ratios - PSU Vs. Pvt. Net Retention of Non Life Industry (Incl GIC)

21% 48%
48% 65% 35% 91% 57%

FY 15 75% 85%
89%
57% 82% 75% 39%
99%
37%
FY 16 87% 86%

57% 79%
85% 20% 97% 68% 28%

FY 17 67% 74%
27%
63% 45% 84%
81% 99% 67%
FY 18 65% 70%

39%
65% 82% 35% 100% 72% 88%
FY 19 66% 71%

Fire Marine Cargo Marine Hull Motor Engineering Aviation Misc.

Pvt Sector Public Sector

FY 15 FY 16 FY 17 FY 18 FY 19

40

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 REINSURANCE INDUSTRY
REINSURANCE PLACEMENT - FY 17 REINSURANCE PLACEMENT - FY 18
100% 100%
0.58%
1.56% 7.76%
90% 90%
12.41% 22.80% 28.56%
80% 28.35% 37.28% 80% 12.95% 23.49%
47.10% 26.72% 39.77%
15.49%
70% 70%
60% 60%
50% 50%
11.43%
10.50%
40% 40% 33.18%
50.42% 67.74%
30% 36.84% 54.27% 24.99% 30% 18.70% 33.75%
55.20% 31.16% 46.45%
13.89%
20% 20%
10% 10%
0% 0%

Placed in India Placed outside India Placed in India Placed outside India

REINSURANCE PLACEMENT - FY 19
100%
1.07%
90% 9.29%
19.19%
80% 12.93% 28.78% 20.87%
70% 48.38%
60%
50%
11.11%
40% 30.44%
46.03%
30% 20.29% 38.13% 33.73%
20% 37.90%
10% 41
0%
Fire Marine Cargo Marine Hull Motor Aviation Engineering Miscellaneous
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Figures are for all Indian Insurance Companies only. Placed in India Placed outside India
 REINSURANCE INDUSTRY
Indian Business ceded Outside India ( Excl. GIC) (Figures in INR Cr)
12,822
12,344

9,000

7,208
6,298 6,723
5,609

3,820 4,015
2,829

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Indian Business Ceded Outside India ( Excl. GIC) ( Figs. IN INR Cr)
100%
90%
328.21
2,435.11 320.06 547.9
80% 689.7 8,165.38
70% 335.19
196.88
60%
50% 2,308.14 285.07 326.83 497.91
5,272.84
40%
112.32
30% 684.88
20% 734.78 607.77
2,479.34 332.21 7,341.44
163.92
10%
0%
Fire Marine Cargo Marine Hull Motor Aviation Engineering Miscellaneous 42

FY 17 FY 18 FY 19
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 REINSURANCE INDUSTRY
GIC RE-PERFORMANCE ANALYSIS

Key Financials of GIC Re (in INR Cr) Business Composition - Earned Premium

2015-16 2016-17 2017-18 2018-19 2019-20 FY 20

Net Premium 16,375 30,175 37,634 38,996 46,655

Net earned premium 15,173 26,715 38,096 37,679 44,145 29%

31%
Net Incurred claims 12,900 21,646 32,954 33,740 43,036

Net Commission 3,490 5,404 6,370 6,105 7,508 FY 19

Operating Expenses 181 240 214 256 373

69%
Investment income 2,805 3,055 3,801 4,633 5,559 71%

Profit after tax 2,848 3,128 3,234 2,224 -359

Combined Ratio 107% 100% 104% 106% 114%

Solvency Margin 3.48% 2.40% 1.72% 2.06% 1.53%

Indian Foreign
43

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 REINSURANCE INDUSTRY - GIC RE- BUSINESS COMPOSITION
42.0% 42.2%
Indian Business Composition Segment wise
FY 19 FY 20

24.3%
20.1%
16.9%
14.7%
10.1%
8.5%
0.3% 1.2% 1.9%
0.3% 0.6% 0.8% 1.5% 1.8% 2.3%
0.1% 1.1% 1.7% 2.1% 1.6% 1.8%
0.1% 0.6% 0.2% 0.7% 0.8%

W.C. Marine Hull Aviation FL/Credit Liability MarineCargo Engineering PA Other Misc. Life Fire Health Motor Agriculture

49.8%
Foreign Business Composiiton Segment-Wise 46.3%

18.3%
17.1%

7.5%
7.2% 4.0% 4.3% 5.5%
3.4% 4.8% 6.2%
0.1% 0.6% 2.0% 1.6% 2.4% 3.9% 4.2% 3.3%
0.9% 1.1% 1.1% 1.5% 1.8%
0.2% 0.2% 0.6%

W.C. Life FL/Credit Other Misc. PA Liability MarineCargo Health Engineering Agriculture Marine Hull Aviation Motor Fire

44

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 REINSURANCE INDUSTRY - GIC RE- CLAIMS TRENDS
Indian Business - Claims Ratio Trend
FY 16 FY 17 FY 18 FY 19 FY 20

150%
99%
142%
59% 96% 52% 78%
132% 124% 104% 178% 96%
68%
76% 68% 74%
117% 11% 89%
93% 37% 88%
94% 86% 50%
122% 75% 158%
79% 88% 91% 109%
10% 45%
-30%

Life Marine Fire Motor Engineering Aviation OtherMisc.

Foreign Business - Claims Ratio Trend

59%

89% 54% 93%

107% 72%
67%
67% 73% 102%
113% 77% 79%
57% 91%
95% 64%
86% 68% 120%
124% 107% 72%
63% 63% 81%

79% 79% 82% 86% 95% 98% 116%

-70%

-170%

45

Life OtherMisc. Marine Motor Fire Engineering Aviation

Back to Content
 OUTLOOK - FY 2021
Non - Life Premium Segment Wise (INR Crore)
The Great Lockdown 2020, as it has now come to be known, saw the Indian economy dive into

45,000 40% recession with the first quarter seeing a drop of almost 23% and the insurance industry saw a
relatively smaller de-growth of 4.2%. However, with incidence ratios of COVID-19 improving for
35%
40,000
33% India, restrictions were eased up and by the end of the third quarter both the numbers showed
30%
35,000
signs of improvement. By the end of FY 21 the GDP is expected to be at -7.5% . The non-life
25% insurance industry on the other hand is likely to close at about INR 193,308 Cr (USD 25.7 Bln).
30,000 22%
20%
Motor which has had an average of 15% growth rate in the last three years, has seen a de-growth
25,000 15%
15%
13% of 10% in FY21. The revised property rates continue to boost the premium growth and stabilise
20,000 10%
the loss ratios of the insurance companies. Health insurance has gained a boost with new product
8%
5% launches. However, other segments which have shown a growth are a result of hardened pricing
15,000
0%
and capacity crunch owing to the pandemic situation. The segments include engineering, aviation
10,000 & liability classes of business. The crop insurance segment which has also seen diminished
-5%
-6%
capacity has seen a de-growth of 8%. With many insurers withdrawing from the segment, and
5,000 -8%
-10% -10%
-11% reinsurers consolidating their portfolios, there is a significant requirement of capacity in the area.
- -15%

All in all the market is seeing a much needed rate correction across all classes of business; this has
been the need for a very long time now. The trends are not expected to change in the medium
Upto Oct' 19 Upto Oct' 20 Growth % term at least.
46

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 ANNEXURES

Back to Content
 ANNEXURE - 1

oNon–life Insurer Profile

oSegment-Wise Gross Premium

oClaims Ratio

oCombined Ratios

oSolvency Ratios
48

Back to Content
 ANNEXURE - 2
BIBLIOGRAPHY

Annual Report of IRDAI, GIC Re, Insurance Companies

IRDAI Handbook on Insurance Statistics

Public Disclosures of Insurers

Swiss Re – Sigma Report

www.assocham.org

https://data.gov.in

www.dipp.nic.in

www.gicofindia.com

www.gicouncil.in

www.irda.gov.in

http://www.pmjdy.gov.in
49
https://www.rbi.org.in/
Other data available on public domain Back to Content
 ABOUT INDIA INSURE
As pioneers in the broking industry in India, we understand that the essence of insurance broking is customer relationship based on unwavering trust,
the kind of trust that assures our customers that their best interests are always kept in mind. We have consistently demonstrated that the best way to
serve needs, and then to craft customized solutions is to provide superior customer support- support that is personalized, thorough and always there
when our customers need it.

We provide a comprehensive array of services in the areas of insurance - property, casualty, employee benefit, reinsurance and risk management
services. In addition, we have developed product specific competencies that allow us to respond to unique demands and opportunities in specific
verticals.
At India Insure, a dedicated team of over 150 trained and experienced personnel would be at your service in providing unique tailor-made insurance
solutions and risk consulting services.

Disclaimer:

The information contained in this report has been taken from sources of secondary research and other sources that we believe are reliable. India Insure and / or any of its members / employees /affiliates do not
guarantee the accuracy or comprehensiveness of such information. The contents of the report may be subject to interpretation. The recommendations made by independent persons/experts/professionals are so
made in their individual capacity and India Insure shall not assume any liability with respect to the same. The report is the proprietary concern of India Insure and its contents or any part thereof shall not be
reproduced, edited or otherwise modified without prior written permission of India Insure.
50
For More Information on this report, please contact:

Ms. Vijayashree Acharya

Email: vijayashree.a@isbsindia.in
51
www.indiainsure.com
Ms. Deepali A Rao
Email: deepali.rao@indiainsure.com ©2020 India Insure