General insurance companies reported a 12.99% growth in their gross direct premium at Rs 55,450.42 crore between April and July compared to the corresponding period a year ago. In July, their premiums stood at Rs 14,378.45 crore, a growth of 22.73% over the corresponding month last year. According to market participants, despite strong growth in July, the motor insurance segment continues to witness a dip in premiums largely due to a fall in car sales in India.
Among the 25 general insurers, New India Assurance, Bajaj Allianz General Insurance, SBI General Insurance and Tata AIG General Insurance, among others, saw a positive growth in the April-July period, showed the data from Insurance Regulatory and Development Authority of India (Irdai).
Pushan Mahapatra, MD & CEO of SBI General Insurance, says, “We have been doing consistently well and except motor insurance, we have grown in the segments such as health, agriculture and property. Motor insurance is a challenge not only for us but for the entire industry. With drop in new vehicle sales we have to look at how the growth can come from other lines of business.”
Motor insurance, which includes third party and own damage combined, has a market share of around 38%, followed by health insurance which has a market share of around 30%. New India Assurance continued its dominant position in the industry with a market share of 16.01%. The combined market share of public sector insurers as on July stood at 41.15%. While in the private sector, ICICI Lombard remained at top with a market share of 8.15% as on July 2019, but its gross direct premium in April-July stood at Rs 4,520.40 crore against Rs 4,915.02 crore a year ago, a fall of 8.03%
While general insurers saw premiums of Rs 50,210.62 crore and a growth of 10.88% in April-July, standalone private health insurers saw a higher growth at 41.93% and premiums at Rs 3,908.93 crore. Specialised public-sector insurers like ECGC and AIC also saw a positive growth of 28.44%. New entrants like Acko General Insurance, Go Digit General Insurance and Edelweiss General Insurance saw huge growth in the period between April-July, showed the data from Irdai.