March 2020 was dominated by the global impact of Coronavirus which caused damage to the economies of almost all nations. The Indian economy also suffered a slowdown and the insurance segment was impacted. A lockdown has been imposed by the Government since March 2020 preventing individuals to venture out of their homes. Insurance sales have, therefore, taken a hit and many insurance companies have posted negative growth in premium collection in March 2020 compared to March 2019. Let’s have a look at the impact of Covid-19 on both the life insurance and general insurance segments –
The life insurance segment was badly impacted due to the Coronavirus scare. Due to the lockdown, insurance advisors were unable to meet clients and sell insurance policies. This reduced a significant part of the distribution channel of life insurance policies. As a result, though life insurance companies sold policies, the numbers were reduced. All life insurance companies, therefore, posted negative growth rates in premium collection in March 2020 compared to the premiums collected in March 2019. Here’s a look at the top five companies that posted the lowest negative growth numbers –
The general insurance business, however, did better than life insurance. While some companies posted a negative growth rate in premiums collected in March 2020 compared to March 2019, many companies posted a positive rate. Universal Sompo led the race by recording a growth figure of 80.57% even in the face of the pandemic and economic slowdown. Following Universal Sompo is Edelweiss Tokio at the second position with a growth rate of 50.72%. Let’s have a look at the growth figures of the top five general insurance companies based on the premiums collected in March 2020 against the premium collected in March 2019 –
The insurance segment, therefore, had a mixed business in March 2020 when Coronavirus has brought the economic activity to a standstill. While life insurers failed to record positive growth figures, many general insurance companies did manage to grow. The next few months might prove challenging for the insurance industry as India struggles with the pandemic but the situation is expected to improve. As the lockdown eases us business would resume and insurance companies would once against post competitive growth figures as their business takes off. You, on the other hand, can connect with your clients digitally and sell them policies online using the Mintpro app. This way you can contribute towards the growth of the insurance industry and also ensure that your business continues even amidst the lockdown.