General insurance industry logs Rs1.7trillion of premium, private sector insurers gain 5 % market share in 2018-19

According to industry performance figures ,released by the General Insurance Council, the four main  public sector insurers, New India Assurance, United India Insurance, National Insurance and Oriental Insurance Company,  at Rs 68,719 crore of  total premium ,up 1,37 per cent , have ceded  five of their market share to the private sector insurers , excluding the stand alone health insurers,  which have mobilised a total premium of Rs 81,600 crore,up almost 25 per cnt ,during 2018-19.

 

Mumbai:

Led  by the private sector companies, the domestic  general insurance industry, with a mix of 34 players, has  grown by 13 percent  to Rs1,70.103 crore in 2018-19.


According to theindustry performance figures ,released by the General Insurance Council, the four main  public sector insurers, New India Assurance, United India Insurance, National Insurance and Oriental Insurance Company,  at Rs 68,719 crore of  total premium ,up 1,37 per cent , have ceded  five of their market shares to the private sector insurers , excluding the stand alone health insurers,  which have mobilised a total premium of Rs 81,600 crore,up almost 25 per cent ,during 2018-19.


The four public sector companies, led by New India Assurance, have a market share of 42,50 per cent at the end of FY 2018-19 a compared to almost 48 percent in 2017-18.
 

The private sector insurers(excluding the stand alone health insurers, led by ICICI Lombard General Insurance, have increased their market share to 50.47 per cent in  2018-19.
 

Seven stand alone private sector health insurers, led by Star Health , have mobilsed  a total premium of Rs 8314 crore,up 37 per cent,and have expanded their market share from 5.87 perent to seven per cent in 2018-19.   
 

ICICI Lombard General Insurance has mobilised a  total premium of at Rs Rs14,488 crore, up 17,25 percent  and is now the fourth largest general insurer, dislodging the public sector Oriental Insurance Company,  in the country.
 

Two of the public sector general insurers – National Insurance and United India Insurance- have recorded  a negative growth.
 

The stock market listed New India Assurance, India’s largest general insurer having operations in 28 countries, has garnered a global premium of Rs 27,000 crore including Rs 23. 910 crore,up 5.25 per cent, of domestic premium.
 

``We are now bouncing back and have recorded a 25 per cent growth in April. By second quarter of this fiscal, we will stabilise our double digit premium  growth with healthy profitability,’’ said Atul Sahai, CMD, NIA.
 

Sahai  took over the reins of the company in December and is focussing on balancing growth and profitability of the company.

Industry analysts have pointed out that the public sector companies  in general have heavily lost own damage motor business, the largest portfolio in theIndian general insurnaceindustry , which are being cornered by majority of private sector insurers through unfair means. 
 

Apart from the ICICI Lombard General Insurance, the top five private sector general insurers in 2018-19 are: Bajaj Allianz General insurance, Rs11,000 crore, up 17 percent, HDFC Ergo Genera Insurance, Rs 8612crore, up 18 percent, Tata AIg General Insurance , Rs 7742, up  43 per cent, Iffco Tokio General, 7002 crore, up 24.33 per cent.


SBI General Insurance, which is planning to go for an IPO during the fourth quarter of Fy 2019-20, has gathered  a total premium of Rs4700 crore, up 24 per cent, during 2018-19.    
 


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