General insurance companies continued to register positive growth at 9% (year-on-year) in gross direct premium in the month of July. However, compared to the first three months of the current financial year, when the growth was in double digits, sales slowed down in July largely due to negative growth in three large public sector insurers. The data from Insurance Regulatory and Development Authority of India (Irdai) show that, in the current financial year, gross direct premium underwritten by the industry was Rs 43,077.03 crore compared to Rs 36,294.29 crore seen in last fiscal – a growth of around 18.69%.
In the first four months of current financial year, private sector insurers grew at 24.69% and received Rs 19,558.28 crore in gross direct premium.
While, public sector insurers saw lower growth compared to their private sector peers at 11.47% and receiving Rs 20,748.75 crore in gross direct premium in April-July. However, in July, New India Assurance, United India Insurance and Oriental Insurance saw negative growth in the range of 7-11%.
“July was a weak month compared to the first three months of this fiscal as overall business environment was dull. However, with around a combined market share of around 48%, we hope to bounce-back soon. In terms of segment, only motor and health continued to remain top segments for us in July,” said a senior official of a leading public sector insurer. New India Assurance remains top player with a market share of 16.22% as on July, 2017.
Among the private players, ICICI Lombard leads at a market share of 10.05%, followed by Bajaj Allianz at 5.93% and HDFC Ergo at 4.99%, show data from Irdai. In July, gross direct premium underwritten by the industry was Rs 9,791.05 crore compared to Rs 8,975.35 crore seen in last July.