The top five players -New India Assurance(with a market share of 12.56 per cent), ICICI Lombard General Insurance(8.72 per cent), Bajaj Allianz General Insurance(6.96 per cent), United India Insurance(6.53 per cent), Oriental Insurance(6.45 per cent) , have expanded their top line in single digits during FY25
Mumbai: In a dismal performance, the Indian general insurance industry has ended FY 25 with a just 6.20 per cent growth, its worst ever productivity since 2001, including Covid period(FY 20,FY21,FY 22) when the industry had seen a growth of around 9.5 per cent.
The industry, consisting of 34 players, including seven stand alone health insurers(SAHIs), has grown its gross premium by 6. 2 per cent year-on- year(Y-o-Y) to around Rs 3,08 trillion in FY 25.
For the month of March, the industry has almost a flat growth of Rs 26,700 crore
The multiline general insurers have barely managed to push their top line by 5.20 per cent to Rs 2,58,000 crore in FY 25.
The sudden slow down in the industry’s forward movement, that had recorded a double digit growth in recent years, can be attributed to a drastic moderation of premium income of major players, across the lines of business including Health Portfolio, which had been growing at a scorching pace, particularly post Covid, in recent years.
Till Feb, Health portfolio, which is used to grow over 25 per cent month over month in recent years, has grown by just 9.31 per cent to Rs 1,07,900 crore.
Even, Fire portfolio, at Rs 22,667 crore, has seen negative growth of six per cent and Motor portfolio, at Rs 89,405, crore has grown by eight per cent till Feb.
The industry’s third largest portfolio, Crop, at Rs 28,413 crore, again has almost remained flat till Feb.
The top five players -New India Assurance(with a market share of 12.56 per cent), ICICI Lombard General Insurance(8.72 per cent), Bajaj Allianz General Insurance(6.96 per cent), United India Insurance(6.53 per cent), Oriental Insurance Company(6.45 per cent) , have expanded their top line in single digits during the reporting year.
NIA, the country’s largest general insurance multinational, with a focus on bottom line, has ended the fiscal with a gross premium of Rs 37,000 crore, up 4.4 per cent Y-O-Y in FY 25. ICICI Lombard General Insurance, at Rs 26,833 crore, has seen its top line going up by 8.30 per cent y-o-y in the same period.
Bajaj Allianz General Insurance, at Rs 21,416 crore, has increased its gross premium by 4.61 per cent Y-O-Y in FY 25. State owned UII, which had lost a large account, Health Insurance scheme of Maharashtra, with a premium of of over Rs 3000 crore during the year, has recorded a flat growth in its gross premium income at Rs 20,073 crore in Fy 25. Another state owned company OIC , at Rs 18,926 crore, has increased its topline by 8.41 per cent y-o-y in FY 25.
Seven stand alone health insurers(SAHIs) have moderated their premium growth and at Rs 38,414 crore, have expanded it by 16 per cent y-o-y in FY 25. In the last few years , these companies had grown their premium by over 25 per cent.
However, together, SAHIs, at 12.49 per cent, have gained market share by over 100 basis points during the year.
The four multiline general insurers have lost their market share marginally from 31.15 per cent to 30.96 per cent in FY 25.
Another development, which has pulled down the overall growth of the industry during FY 25 , is the degrowth of two large private sector insurers including HDFC Ergo General Insurance and IFFCO Tokio General Insurance.
HDFC Ergo has cut down its top line by almost 15 per cent y-o-y to Rs 15,817 crore while IFFCO Tokio has also slashed its premium base by over 15.5 per cent y-o-y to Rs 8309 crore in FY 25.
Two midsized players- Tata AIG General Insurance and SBI General Insurance- have achieved a double digit growth, in their premium income, during the reporting year.
Tata AIG General Insurance, with a new CEO, at Rs17,703 crore, has loaded 17.31 per cent Y-O-Y higher premium while SBI General Insurance, at Rs 13,890 crore, has expanded its premium kitty by 11 per cent Y-O-Y during FY25.
Analysts have been critical about the low growth of the industry despite massive focus and regulatory incentives provided by regulator IRDAI.