The Hindu Business Line : Private insurers record 28% growth

Bangalore, March 21 Private-sector non-life insurers increased their market share to 40 per cent on the back of motor vehicle and retail insurance products.

According to industry data released by the Insurance Regulatory and Development Authority (IRDA), private-sector non-life insurers gross premium collection was Rs 9,295 crore for the first 10 months of the current financial year. This equals a 28 per cent growth over the corresponding period of the last financial year.

Although public sector insurers had a gross premium collection of Rs 13,959 crore, the growth was barely 4.05 per cent.

New India Insurance Company Ltd remained on top with a gross premium income of Rs 4,361.44 crore, up 6.4 per cent from last year. United India Insurance Company Ltd merged the fourth largest insurer with a gross premium income of Rs 3,076.39 crore, up 6.02 per cent.

But the gap between the largest private sector Iinsurer, ICICI Lombard and UIICL was closing. ICICI’s premium income for the first 10 months of this year was Rs 2,903.10 crore, up 12 per cent.

PSU insurance company officials said that the slowdown in premium collections were largely on account of drop in tariffs after complete deregulation last year. The steep drop in premia in fire and engineering was evident from low accretions between April and December this year. According to the IRDA data, fire premia collections during the first nine months of current year was down to Rs 2,856.62 crore as against Rs 3,482.13 crore during the corresponding period of last year.

Instead it was the motor insurance and other covers that included retail products like house-hold risk cover, which powered private sector growth this financial year.

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