In the next four years, the non-life insurance business in India will double, Mr Atul Sahai, chairman cum managing director of India’s biggest general insurer, New India Assurance, has predicted.
In an interview with Zee Business, he said that the CAGR of the non-life insurance industry had remained at 17-18% for years but was reduced to 2% last year.
“But New India, being New India, has disproved all the averages and predictions and gave a very good growth and profits.”
He added, “Going forward, I expect not only for us but also for the colleagues of the rest of the industry that the old CAGR of 17-18% will be restored and the way forward will be open. I am very positive about it.”
He said that the digitisation mission has been completed early by a year or two. He said, “We all were moving towards digitisation at our own pace but the coronavirus has increased the pace. Apart from this, it has also increased awareness about health insurance, which will benefit the entire industry because everyone knows that insurance is necessary, especially health insurance.”
Commenting on the outlook for the insurance market, Mr Sahai said, “I am seeing a trend where the demand for personal mobility has gained pace.
“So, when there is an increase in demand for personal mobility, it will lead to an increase in the sales of the vehicles and this will increase the amount of insurance.”
He said that the general insurance industry is dominated by three lines of business, namely, health, motor and property. He said, “And these three segments will be the base for the return of CAGR to 17-18%.”