Insurers receive 1.42-mn Covid-related claims in FY22 worth ~16,000 crore so far

General and health insurers have received almost 1.4 times the number of Covid-related health claims so far in FY22 than what they had received in entire FY21. According to General Insurance Council data, in FY22, as of August 27, they have received more than 1.42 million claims, worth ~15,956 crore. Insurers have settled almost 85 per cent of the claims they have received this year. So far, they have settled 1.17 million claims worth ~10,397 crore. In comparison, in FY21, insurers had received 986,366 covid claims, worth ~14, 560 crore and settled 849,034. In FY21, they paid out claims to the tune of ~7,833 crore. Since the onset of the pandemic, insurers have received 2.4 million claims amounting to ~30,516 crore, of which they have settled more than 2 million claims shelling out ~18,230 crore. The general insurance industry has seen its profits plummet due to the mounting covid claims. Although the claims burden has come down with the second wave subsiding, the elevated level of infections as well as the reimbursement claims are keeping insurers on tenterhooks. Also, the impending third wave is expected to put more stress on the non-life insurer’s loss ratio in the segment. Experts have said as no increase in the motor third party premium has been announced and covid claims are persisting, the sector is expected to witness pressure on near-term profitability. Notwithstanding the higher claims, health portfolio of general and standalone health insurers is driving the premium growth of non-life insurers. In April - July period of FY22, the health portfolio has reported a 34.2 per cent growth, which is significantly higher than the 9.9 per cent growth seen in the same period last year.