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C.R. Sukumar

Hyderabad , Jan. 13

ALLAYING apprehensions that the growth for the domestic non-life insurance had begun slowing down, all the 12 players in the field have returned to their winning ways during November 2003.

During November 2003, the industry grew by 17 per cent, the best during the current fiscal year. According to the former Chairman and Managing Director of Oriental Insurance Company Ltd, Mr G.V. Rao, the non-life industry accretion during November was Rs 162 crore of premium, of which Rs 88 crore came from private players and Rs 74 crore from the public sector companies.

"This shows that the private sector, in particular, is playing a remarkable role in shaping the market developments. It is outperforming the public sector players in market accretions almost in every month," Mr Rao observed in a release of Insurance Regulatory and Development Authority.

According to Mr Rao, even the public sector, despite their lower monthly accretions, did well during November with a growth rate of 8.9 per cent, which was well above their cumulative average of 5.3 per cent.

As at the end of November, the non-life industry had recorded a total gross premium underwritten of Rs 10,459.44 crore. Of this, the contribution of public sector amounted to Rs 8,979.36 crore enabling it to have a market share of 85.85 per cent. With a contribution of Rs 1,480.08 crore, the private sector has grabbed a market share of 14.15 per cent. On a year-on-year basis, the private sector recorded a growth of 79.87 per centMr Rao said that the private sector players with a premium income of about Rs 1,500 crore against Rs 8,700 crore of the public sector players as at the end of November 2003 have stabilised their market share at about 15 per cent, significantly up from 9 per cent or so at the end of last year.

"That these gains have been achieved in the profitable segments of portfolio are another pointer to suggest that the public sector players will have a relatively tough time with high costs, worsening loss ratios and in general, with poor operational results," he added.

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