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New Delhi: State-run auto insurance providers are fast losing ground to private players and their market share could be under pressure unless PSUs change their work strategy, says a JD Power study.
According to the study, ICICI Lombard is ranked first in customer satisfaction index of auto insurance business in the country, followed by Oriental Insurance and National Insurance at number two and number three, respectively.
“Speed of response is very important. PSUs have not been able to understand the market response. Unless the nationalised insurance companies change their mindset, their market share will be under pressure,” says Mohit Arora, senior director, JD Power Asia Pacific.
“Although the final report on auto insurance by the Insurance Regulatory & Development Authority has not been published, we are expecting the PSUs’ share to come down by 6-10% for 2008-09,” says Arora, adding that currently state-run auto insurers enjoyed about 67% market share in 2007-08.
According to the study, the average age of auto buyers has come down to 35 years from 39 years in the last seven years which has changed the customers’ preferences.
The study said over 80% of the policy holders did not file a single insurance claim with their providers and about 90%of the policies were renewed.
“Greater amount of financial oversight and global norms are going to be implemented in the Indian insurance business, in line with the rules in the West, as more and more foreign insurance companies venture into the country,” Arora added.
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