IRDAI growth targets for general insurance companies

Just like for life insurance companies, these growth targets for general insurers have been set based on their past performance, their distribution network and their current premium base.

For ICICI Lombard, the IRDAI has proposed a target of 40 percent premium growth. It is expected to grow year-on-year till FY27. For New India Assurance, the IRDAI has proposed a premium growth target of 25 percent. For Bajaj Allianz General Insurance, the proposed target stands at 38 percent and for SBI General and Star Health Insurance it is 35 percent and 45 percent, respectively.

No doubt, the targets for general insurance companies are tall, but here is how the historical growth rate compare to the IRDAI target for these companies for example — ICICI Lombard and New India Assurance.

For ICICI Lombard, the strongest growth of 30 percent came in FY22, which was also because of a strong base effect. The target for ICICI Lombard is still away at 40 percent.

For New India Assurance, the best growth came in FY20 and FY22 of around 12 percent. Looking at the IRDAI target, the New India Assurance would have to more than double its premium to achieve these targets.