MSME Businesses – General Insurance Industry

As per a report from Invest India, India’s share in global non-life insurance market was ~1% in 2021. The Indian non-life insurance sector recorded 11.3% growth during 2021 whereas the global non-life insurance premium had only 8.4%.

The gross direct premium of non-Life insurers (within and outside India) registered YoY growth of 10.8%, primarily driven by health and motor segments. The net incurred claims of non-Life insurers stood at INR 1.4 Lakh Cr in FY22, primarily driven by rising per capita income, product innovations and customization, development of strong distribution channels, and rising financial literacy. The insurance penetration of non-life insurance sector has gone up from 0.5% in FY 02 to 1% FY 22. Non-life insurance industry underwrote total direct premium of ~$29 Bn (INR 2.21 Lakh Cr) in FY 22, registering a growth of 11% from FY 21. The Indian health insurance industry reported a growth of 26.3% in FY 22, making it the largest non-life insurance sub-segment with a market share of about 36%, followed by the motor segment at 32%. Fire and other segments also recorded positive growth of 7.1% and 1.1%, respectively in FY 22. The general and health insurers have issued 266 Mn policies in FY 22, reporting an increase of 7.7%

Indian Demographics is conducive towards Insurance penetration. 68% of India’s population is young and 55% of its population is in the age group of 20-59 (working population) in the year 2020 and is estimated to reach 56% of the total population by 2025. These point towards a young insurable population in India. MSMEs are a key Insurance market and requires a deeper penetration to make them risk free

To know how you can protect your MSM Enterprise from risks and also look at Insurance as a Income Earning Opportunity contact@nat-cons.com