The slowing Indian economy will weigh on insurance premium growth over the next two-three years, Moody’s Investor Service said, but added that supportive measure taken by regulator IRDAI will help counterbalance the deteriorating economic environment. “India’s GDP growth weakened to its slowest rate in five years in the fiscal year ending March 2019, and the resultant financial pressure on rural households amid weaker job creation is in turn also weighing on premium growth,” said Moody’s Senior Vice President Benjamin Serra. According to the latest estimates by the Indian Statistics Department, the economy will grow at 5% in the current fiscal ending in March, slower than the 6.8% growth recorded in 2018-19. GDP growth fell to a six-and-a-half-year low in the quarter ended September. However, low insurance penetration rates in India also suggest there is still ample room for growth. According to Moody’s, health premiums are likely to increase due to the government’s Ayushman Bharat scheme that was launched in September 2018.

(The Hindu)