| Despite India's exports growing at a healthy rate of over 20.3 per cent to over $63 billion in fiscal 2004 ($52.7 billion in fiscal 2003), the marine insurance business saw a six per cent decline in premium income to Rs 1,140 crore in 2003-04. |
| The industry attributes the Rs 70 crore decline in business to a dramatic drop in premium rates "" spurred by the rush to attract fire business, which is tariff-driven. |
| Many marine insurance covers during the year were offered at a mere Re 1. |
| According to the Insurance Regulatory and Development Authority (IRDA), much of the growth has taken place in portfolios that are traditionally regarded as loss-prone. |
| Motor insurance premium income increased by Rs 1,020 crore to Rs 6,500 crore (reflecting an increase of 20 per cent), health rose by Rs 270 crore to Rs 1,300 crore (a rise of 27 per cent), liability jumped by Rs 165 crore, reflecting a 100 per cent hike, while aviation increased by Rs 90 crore, a rise of 25 per cent. |
| Fire insurance business (there are 12 players in the segment) grew by just 6.5 per cent to Rs 3,200 crore, accounting for 20 per cent of the total Rs 16,130 crore premium income underwritten in financial year 2003-04. |
| There has also been a major shift in the business with private insurance players eating into the existing business of public sector entities. |
| While private insurers recorded a growth of Rs 170 crore in the fire portfolio, the state-owned insurance players struggled to retain their existing share and saw a drop of Rs 80 crore under the same risk portfolio. |
| The competitive pressures in an industry with 12 players have resulted in fire, marine and engineering businesses struggling to grow. |
| The name of the game today is how well to cater to the customer. Indian companies can now source risk covers at bargain rates provided they also source their profitable tariff policies from the same insurer. |
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