SINGAPORE, May 21 (Bernama-BUSINESS WIRE) — AM Best is maintaining a negative market segment outlook on India’s non-life insurance sector. Key factors underpinning the outlook include the sector’s strong competition, poor pricing discipline in core business lines, reliance on investment activities for profitability and the economic fallout from the COVID-19 pandemic.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: India Non-Life,” states that aside from investment market pressures expected to result from the COVID-19-driven economic turbulence, non-life insurers also face uncertainty and challenges in other areas of their businesses. Although AM Best expects insurance premiums in India to continue to grow in the medium term, recent and further periods of mandatory lockdowns to curb the spread of COVID-19 are likely to drive a slowing and uneven pattern for premium growth in the short term.