The Hindu Business Line : Private non-life players' market pie up at 35 pc

THE private sector non-life insurance players have proved that their inferior size, infrastructure and relatively low capital structure were no bar to competing in the market place to gain consumer acceptance. In fact, they gave a tough fight to established players in all departments of business and increased their market share sharply.

For the first quarter ended June 2005, new players, along with Export Credit Guarantee Corporation (ECGC), have raised their market share to 25.98 per cent from 19 per cent in the corresponding quarter of the previous fiscal. Without ECGC figures, the new players raised their market share to 35 per cent from 23.6 per cent.

Among the private players, ICICI Lombard, Bajaj Allianz and IFFCO-Tokio took the lead in driving the premium growth both in quantum and in percentage terms. Of the total industry accretion of Rs 707 crore for the first quarter, all the new players put together contributed Rs 514 crore, while the three players alone contributed Rs 423 crore. The four public sector players could contribute only Rs 172 crore, a growth of 4.6 per cent, while ECGC contributed Rs 21 crore, recording an increase of 18.5 per cent.

According to the statistics compiled and analysed by the Insurance Regulatory and Development Authority (IRDA), the individual accretion of each of these three players was higher than that of any of the established players by a huge margin. The total industry's premium stood at Rs 5,504 crore, recording a growth of 14.75 per cent over the corresponding quarter of previous fiscal.

ICICI Lombard recorded an accretion of Rs 203 crore for the quarter under review, a growth of 92 per cent over the corresponding quarter of previous fiscal. Bajaj Allianz recorded an accretion of Rs 109 crore, a growth of 52 per cent, while IFFCO-Tokio garnered an accretion of Rs 105 crore, reporting an increase of 81 per cent.

Interestingly, the public sector New India emerged as the fourth player in terms of premium accretion with Rs 99 crore of accretion, a growth of 9.2 per cent, while Oriental reported an accretion of Rs 95 crore.

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