Mumbai: General insurance (GI) industry expects better growth in the current fiscal as greenshoots start appearing in the commercial vehicle segment amid hope that post-election a stable government at the Centre would augur well for the sector.
"Commercial vehicle sales have shown positive growth, which has brought optimism in the market. Usually, when CV sales grow, it's an indication that economy is likely to pick up," Managing Director and Chief Executive Officer of Bajaj Allianz General Insurance, Tapan Singhel, said Thursday.
On the impact of outcome of general elections, he said a stable government at the Centre would help the industry.
Growth of general insurance industry dropped to around 10-12 per cent in the just-concluded fiscal from about 18 per cent in FY13.
This was mainly due to fall in vehicle sales as auto sector accounts for more than 40 per cent of the industry's total business. Also, a slowdown in new projects has dragged down the industry's growth.
"I don't see much growth in first half of this fiscal expect April when many renewals in commercial line come up. In H2, things are likely to be better," Chief Executive Officer of Tata AIG GI, K K Mishra, said.
The industry is likely to do better than the last fiscal's 10-12 per cent expansion, he said.
Asked about the impact of a possible below normal monsoon, Mishra said while health insurance segment would be less affected, automobile sales will take a hit.
However, Bharti Axa GI struck a different note, saying industry may see subdued growth this fiscal also and a revival is possible only in FY16.
"Recovery will happen but at a sluggish pace. So, the industry may not see significant growth revival this fiscal," said Amarnath Ananthanarayanan, Chief Executive Officer of Bharti Axa General Insurance.
