Amidst Covid-19 Pandemic disruptions, the domestic general insurnace industry led by state owned New India Assurance(NIA) and six stand alone health insurers, have logged in Rs 97,025.04 crore of premiums, showing a marginal year-on year(y-o-y) growth of 1.50 per per cent, in H1 fy 201-21.
However, for the month of September,the industry's premium,at Rs 23,056 crore,has declined by 4.40 per cent y-o-y as so many large private sector general insurers are yet to return to the growth path.
Six stand alone health insurers, led by Star Health & Allied Insurance,,have seen their premium rising by 28 per cent y-o-y to Rs 7,810.97 in te first six mionths of the current fiscal.
For the month of September,these stand alone health insurers,at Rs 1,542 crore, have increased their premium by almost 38 per cent y-o-y.
NIA ,which has consistently maintained a positive growth,since Covid-19 pandemic outbreak and consequent disruptions due to nationawide lockdown in March,despite having a large base, has completed both H1 FY 20-21, and the month of September with a positive growth.
The total premium of the largest domestic general insurance company, at Rs14,100 crore,has gone up by 4 per cent y-o-y in H1 FY2020-21.Bucking the trend in the industry,the listed general insurer has recorded growth in all line of business except in motor and crop in H1 2020-21..
Industry analysts point out that thanks to NIA's performance during Covid-19 pandemic, four state-owned general insurers together still have managed to protect their over-all market share of around 37 per cent,with a marginal loss,over tte last year,despite aggressive expansion of private sector companies and financial weakness of three other psu general insurers-United India Insurance, Oriental Insurance Comoany and National Insurance Company..
However, analysts have pointed out that the largest private sector general insurer,ICICI Lombard General Insurance,has been de-growing its top-line over last one year, to chase profitability after getting listed..It has completely exited crop insurance and doesn't do many other business like aviation.
It has also lost market share marginally in H 1 2020-21 and intend to grow its market share by acquiring Bharti -AXA General insurance.
Except,SBI General Insurance Company, other private sector general insurers, which have a premium base of over Rs 3000 crore, are yet to recover from pandemic blues in H1 2020-21.
The industry's health portfolio,which has emerged as the largest portfolio,by displacing motor portfolio,has now a market share of 31 per cent and has grown by 13 per cent y-o-y to Rs 22,903 crore in the first five months(Apr-Aug) of the current fiscal.
With health segment becoming the leading business for insurance companies, TL Alamelu,member (Non-Life),IRDAI, recently had commented that insurers will have to restructure their entire strategy of how to do business.
The market share of motor portfolio, generating a total premium of Rs 22, 253 crore, down 16 per cent, in H1 FY2020-21, has fallen from 37 per cent, as of Sept, 2019-20, to 30 per cent in Sept, 2020-21.
The retail health portfolio premium,including the newly launched Covid-19 short term products, has gone up by 22 per cent y-o-y to Rs 9645 crore in Apr-Aug period.
The group health portfolio of the industry has expanded by 10 per cent y-o-y to Rs 11.896 crore in Apr-Aug period.
Crop Insurance, which has been a major contributor to the premium kitty of the industry, has grown by 22 per cent to Rs 10,200 crore in Apr-Aug period.
Baja Allianz General Insurance, with premium of Rs 1719 crore, up 83 per cent, has emerged as the largest private sector general insurer in this segment. State owned Agriculture Insurance Company(AIC) with a total premium of Rs 4681 crore, is the segment's largest player. ..
Fire portfolio has generated a total premium of Rs 10,201 crore, up 35 per cent, in H1 2020-21 .