Go Digit Rs 255
Indian general insurance is a good business, but not an inherently exciting growth industry.
Premiums have grown at roughly 9–11% in recent years and, over the longer term, should probably compound in the high-single to low-double digits as GDP growth, rising incomes and low insurance penetration work together.
The more interesting variable is underwriting discipline.
Insurance is one of those businesses where chasing market share can destroy value. Aggressive pricing and high commissions can create impressive premium growth today but leave insurers with poor claims experience tomorrow. The best insurers therefore focus less on the premium written and more on the economics of every policy.
