Health insurance witnessed subdued growth in the April-June quarter (Q1) of FY23. Despite that, health insurance premiums registered 22 per cent growth in Q1FY23 to over Rs 21,000 crore, primarily driven by group health insurance premiums.
Motor insurance premium rose 27.5 per cent year-on-year (YoY) to Rs 15,765.95 crore, albeit on a low base, indicating a revival of growth in the segment buoyed by a pick-up in vehicle sales.
According to data released by the General Insurance Council, retail health premiums witnessed 11 percent YoY growth in Q1FY23, while group health premiums grew by 27 percent. General insurers, which deal in multiple lines of business, witnessed only 2 percent YoY growth in retail health insurance premium but managed to post 21 percent YoY growth in overall health premium in Q1, owing to group health premium, which grew 25 percent YoY.
Standalone health insurance companies reported 21 percent increase in retail health premiums and over 46 percent growth in group health premiums. Their overall health rewards were up 28 percent YoY.
The group health insurance segment has witnessed an increase in premium rates due to medical inflation and adverse claims ratio in the earlier periods.