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Gross written premium grew 6% to Rs 9,260 crore
On the back of the economic downturn and cut down in premium rates in the de-tariffed regime, growth in the almost Rs 30,000 crore general insurance industry more than halved, to just 6% in the first quarter of the current fiscal. Growth in Q1 last year was over 15%. Data available is gross written premium in the June quarter grew to Rs 9,260 crore. Also in a marked trend, public sector general insurance companies have grown their gross written premium during Q1, while established private players have seen a de-growth.
The four state-owned firms registered a 7% growth and almost all the established private insurance firms barring a couple, registered a de-growth. Collectively, established private players have seen a de-growth of around 8% in the June quarter. Newer private players, however, have grown, given their low base. Among nationalised general insurers, United India grew by 14%. Oriental Insurance and New India Assurance grew their premium by 10% and 7% respectively. National Insurance, however, registered a de-growth of 2%.
The public sector insurers, which saw a dent in their premium income in the earlier phases of deregulation have reversed the trend, said an industry observer. "Renewals in business and strong marketing efforts like tie-ups in motor and health have helped them recoup some of their lost share in business", the source said.
Public sector companies have gained market share from the established private players in the last two quarters.
If statistics are anything to go by, then the first quarter has shown some disturbing trends for established private players in the market except for 3-4 players, like Royal Sundaram and Cholamandalam have grown faster than the industry at 10% and 17% respectively. Iffco Tokio has also registered a positive growth of 4%.
Reliance General, once the fastest growing general insurer, has hardly grown its gross premium income in Q1, while players such as ICICI Lombard and Bajaj Allianz General have seen a de-growth of 21% and 13% respectively. Tata AIG General saw a de-growth of 10% in the first quarter.
Owing to their late entry, private companies such as Future Generali and Universal Sompo have seen high growth numbers. HDFC Ergo, which restructured its business at a later stage, grew gross written premium by 247% in the April-June quarter.
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