Asian Economy: Overview, Growth and Development - Slowing Indian economy weighs on insurance and reinsurance sectors.

Byline: S. Kamal Hayder Kazmi

Slowing Indian economy will weight on insurance premium growth over the next two-three years, Moody's Investor Service said on Tuesday. However, supportive measure taken by the regulator Insurance Regulatory and Development Authority of India (IRDAI) will help counterbalance the deteriorating economic environment.

"India's GDP (gross domestic product) growth weakened to its slowest rate in five years in the fiscal year ended 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 Indian statistics department, the economy will grow at 5 percent in the current fiscal ending in March, slower than the 6.8 percent 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...