Gross direct premium income (GDPI) for the non-life insurance sector is expected to increase by 14% to 15% by FY37. In a meeting with members of the General Insurance Council, CEOs of private sector general insurance businesses, and Vivek Joshi, Secretary of the Department of Financial Services, Ministry of Finance, this forecast was presented to them.
The non-life insurance industry reported 16.41% year-over-year growth in March 2023. Nonetheless, India's general insurance penetration rate is still low at 1% as of FY21, compared to 3.4% in Taiwan and 5.2% in South Korea. CEOs in the sector blamed a lack of knowledge for this and emphasized how digital technology is opening up new distribution avenues.
The regular Goods and Service Tax (GST) notices that general insurance businesses receive were another topic of discussion during the conference. The industry's growth depends on resolving disputes more quickly and lowering the GST rates on health insurance policies. Since that 54% of Indian vehicles are uninsured, it was emphasized how crucial it is for state governments and the Ministry of Road Transport and Highways to work together to implement the Motor Vehicles' Act.
In a news release, the Ministry of Finance mentioned how the expansion of cashless establishments and treatment cost standardization might propel the growth of health insurance. In India, almost 40 crore individuals do not have health insurance, according to a Niti Aayog Health Insurance Report. The health insurance market is predicted to grow as a result of the adoption of a hybrid model that combines aspects of insurance and trust.