The Hindu Business Line : PSU general insurers improve market share

Mumbai, June 26 Public sector general insurance companies collectively increased their market share in May. Three of them —Oriental Insurance, United India Insurance, and New India Assurance — reported a positive growth in terms of gross premiums underwritten. The fourth player — National Insurance — reported a negative growth.

Private sector players such as ICICI Lombard, Bajaj Allianz, IFFCO Tokio and Tata AIG reported double digit negative growth in May.

“If we go by the renewals that have happened in April and May, there has been a definite shift in business from the private sector insurers to the public sector insurers. Competitive premiums and confidence in public players are the main reasons for this shift,” said a senior Oriental Insurance official.

In May, the four public players together had a market share of 60.51 per cent against 59.39 per centin the same period last year. In the reporting month, the gross premium underwritten by public insurers grew at 4.6 per cent against an almost flat growth for the private insurers. According to the data compiled by the Insurance Regulatory and Development Authority, in May, the general insurance industry clocked lower growth of 2.7 per cent vis-À-vis 4 per cent growth in April. In May, the gross premium underwritten by the industry was Rs 2,489 crore as against Rs 3,737 crore in April.

Public sector players have underwritten business of Rs 1,506.35 crore in May while the private players reported GWP of Rs 982.76 crore.

Public players which grew their business were Oriental (13.2 per cent growth), United India (12.6 per cent) and New India Assurance (2.4 per cent). However, National Insurance reported a negative growth of 7.8 per cent.

The private sector insurers reporting negative growth include ICICI Lombard (-19.7 per cent), Bajaj Allianz (-17.4 per cent), IFFCO Tokio (-13.26 per cent) and Tata AIG (-19.6 per cent). Reliance General, however, grew by 11 per cent in May after having de-grown in 2008-09. The relatively newer players have managed to post a good growth.

Specialised Institutions

Both the standalone health insurance companies, Star Health and Allied Insurance (SHAI) and Apollo DKV Insurance, have registered a good three-digit growth in May. SHAI and Apollo DKV had a GWP of Rs 9.98 crore and Rs 9.57 crore respectively. Export Credit Guarantee Corporation of India grew by 16 per cent in May while Agricultural Insurance Company reported a positive growth of 76 per cent during the same period.

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