The Hindu Business Line : Pvt non-life insurance players fare better in April-January

ALL the private players in the Indian non-life insurance industry continued their dominance by registering quantum increase in their business for the first 10 months of the current fiscal year. In contrast, three of the public sector majors suffered a setback.

The performance of the private players assumes significance since the overall growth of the industry has recorded a fall at 9.5 per cent during January 2004 compared to the average growth of 12.32 per cent registered so far during the fiscal.

While the non-life premium at the end of January 2004 showed a growth rate of 12.32 per cent and an accretion of Rs 1,450 crore to reach a premium level of Rs 13,250 crore, the private players have contributed Rs 775 crore, a growth of 71 per cent.

According to the statistics compiled by the insurance regulator, the gross premium underwritten by the industry up to the end of January of current fiscal stood at Rs 13,245.75 crore, compared to Rs 11,792.36 crore as at the end of January 2003.

While public sector players contributed Rs 11,374.34 crore (Rs 10,696.34 crore), a growth of 6.34 per cent, the private players contributed gross premium of Rs 1,871.4 crore (Rs 1,096.01 crore), an increase of 70.75 per cent.

The market share of public sector players was 85.87 per cent and private players stood at 14.13 per cent.

Analysing the industry performance, the former Chairman and Managing Director of Oriental Insurance Company, Mr G.V. Rao, said the trends indicate the strategy of private players whittling away the existing corporate accounts of the public players instead of widening the market base that is more expensive.

Mr Rao anticipated that the market share of the public players, currently running at 86 per cent, might drop if this trend continues during the last two months of current fiscal.

Among the public sector, New India dominates with a market share of 24.38 per cent, followed by National Insurance at 21.43 per cent, United India at 19.47 per cent and Oriental Insurance at 18.25 per cent market share.

With growth of over 131 per cent and market share of 3.05 per cent, ICICI Lombard led the private players.

Bajaj Allianz (growth 63 per cent, market share 2.91 per cent), Tata AIG (growth over 62 per cent, market share 2.27 per cent), IFFCO-Tokio (market share of two per cent), Royal Sundaram (1.6 per cent share), Reliance General (1.1 per cent), HDFC Chubb (0.63 per cent) and Cholamandalam (0.58 per cent).