Thanks to Covid-19 Pandemic and stagnant motor third party premium for the last two years, for the first time in the history of Indian general insurance industry, in FY 2021-22, Health portfolio has replaced Motor business as the largest segment in the industry
Though New India Assurance, at 14.76 per cent(14.33 per cent in Fy2020-21), itself has grown its market share, together all the four main line general insurers, NIA, UII, OIC and NIC ,have lost 212 basis points of their market share to the private sector players and have a total market hare of 34 per cent at the end of FY 2021-22 .
Analysts point out that with three of the public sector general insurers, UII, National Insurance, with a premium of Rs 13,123 crore (Rs14,140 crore in Fy 2020-21) and OIC slowing down their top line growth, the general insurance industry will see a bit of churn in rankings with more private sector players occupying top five positions in one or two years
Mumbai:
Showing signs of full recovery post Covid-19 Pandemic, led by state owned New India Assurance(NIA), the domestic general insurance industry has ended FY 2021-22 with a premium of Rs 2.20 trillion, up 10 per cent, over Rs 1.98 trillion of premium mobilised in FY 2020-21.
On a monthly basis for the month of March, the industry, consisting of 33 players, has recorded a premium of Rs 21,591 crore as against Rs19,477 crore in the year ago period, according to the annual figures released by the IRDAI on Monday.
Thanks to Covid-19 Pandemic and stagnant motor third party premium for the last two years, for the first time in the history of Indian general insurance industry, in FY 2021-22, Health portfolio has toppled the Motor business to become the largest segment in the industry.
Till February 2022, the total health premium of the industry has risen by 26 per cent to Rs 66.167 crore(Rs 52,689 crore in the year ago) while total motor premium (own damage and motor third party motor premium) has expanded only by 3.62 per cent to Rs 63,052 crore(Rs 60,851 crore in year ago) during the period.
Crop insurance premium which has fallen by five per cent to Rs 26,654 crore till February, 2022, is still the third largest portfolio of the Indian general insurance industry.
24 general insurance companies registered an 8.79 per cent increase in their combined gross direct premium during 2021-22 at Rs 1,84,775.17 crore against Rs 1,69,844.68 crore in the previous fiscal.
NIA,the largest Indian general insurer, with operations in 27 countries, has closed the fiscal with a domestic premium of Rs 32,569 crore as against Rs 28,548 crore in FY 2020-21. Together, with its overseas premium, NIA may end the fiscal with Rs 36,000 crore of total premium.
This is also for the first time, private sector general insurer ICICI Lombard General Insurance , with a premium of Rs 17,976 crore ( Rs 14,003 crore in FY 2020-21) ) has emerged as the second largest general insurer in the country.
The insurer with a market share of 8.15 per cent, had acquired Bharti Axa General Insurer in 2020-21 that has helped the company to capture the second position in the industry, say analysts.
PSU general insurers like Chennai based United India Insurance(UII), with a premium of Rs 15,780 crore in FY 2021-22(Rs 16,704 crore in 2020-21)) and Delhi based Oriental Insurance, with a premium of Rs 13,700 crore(Rs 12,449 crore) have however retained their third and fourth position respectively.
But, Pune based Bajaj Allianz General Insurance, with a premium of Rs 13,688 crore in 2021-22(Rs 12,569 crore) is fast catching up with OIC
Another private sector insurer HDFC Ergo General Insurance, with a premium of Rs 13,500 crore ( Rs 12,569 ctore in 2020-21) is also advancing rapidly.
Analysts point out that with three of the public sector general insurers,UII, National Insurance, with a premium of Rs 13,123 crore(Rs 14,140 crore in Fy 2020-21) and OIC trimming their top line growth to be profitable , the general insurance industry will see a bit of churn in rankings with more private sector players occupying top five positions in one or two years.
Though NIA, at 14.76 per cent(14.33 per cent in Fy2020-21), itself has grown its market share, together all the four main line general insurers, NIA, UII, OIC and NIC ,have lost 212 basis points of their market share to the private sector players and have a total market hare of 34 per cent at the end of FY 2021-22.
Five standalone private sector health insurance companies led by Star Health & Allied Insurance Company witnessed a 32.53 per cent jump in their gross direct premium income in FY22 to Rs 20,880.08 crore against Rs 15,755.18 crore a year ago,
For the month of March, these health insurers have mobilised a total premium of Rs 2,831 crore (Rs 2,447 crore).
The two specialised PSU insurers — Agricultural Insurance Company of India Ltd and ECGC Ltd– posted a 14.22 per cent rise in their collective gross premium to Rs 14,979.47 crore compared to Rs 13,114.85 crore in FY21.