Riding on recovery in auto sales and retail health segments, the general insurance industry recorded 13.4 per cent growth in gross premium collected during the last financial year. The industry collected gross premium of Rs 34,627 crore in 2009-10 compared with Rs 30,528 crore in 2008-09.
The four public sector players — New India Assurance, United India, National India and Oriental Insurance — posted 13.8 per cent growth in gross premium in 2009-10. At the same time, private players recorded 12.8 per cent increase in gross premium.
“Growth in auto sales and retail health helped industry clock a double-digit growth. Moreover, there was some correction in rates over the last six months in fire and engineering policies,” said KG Krishnamoorthy Rao, chief executive officer, Future Generali General Insurance.
Premium on property insurance went up 15-20 per cent during the last six months. Similarly, in the last financial year, group mediclaim rates witnessed an increase of 20-30 per cent.
| HAPPY TIMES Gross premium income collected by non-life insurers | |||
| Insurer | 2008-09 | 2009-10 | % Chg |
| New India | 5,508.83 | 6,013.43 | 9.21 |
| United India | 4,277.77 | 5,175.37 | 21 |
| Oriental | 3,964.80 | 4,718.75 | 19 |
| National | 4,279.90 | 4,620.92 | 8 |
| ICICI Lombard | 3,419.84 | 3,292.74 | -3.70 |
| Bajaj Allianz | 2,640.49 | 2,515.7 | -4.7 |
| Reliance | 1,914.87 | 1,979.65 | 3.4 |
| Iffco-Tokio | 1,401.2 | 1,513.59 | 8 |
| Private total | 12,496.70 | 14,099.40 | 12.8 |
| Public total | 18,031.30 | 20,528.50 | 13.8 |
| Grand total | 30,528.00 | 34,627.80 | 13.4 |
In 2009-10, the automobile industry recorded 26.41 per cent growth in sales, according to data from the Society of Indian Automobile Manufacturers. Auto insurance contributes around 40-45 per cent of the total premium collected by the general insurance industry. Health contributes around 15 per cent. This segment has been growing at roughly 30 per cent over the past two years.
Though premium rates have increased over the last one year, but private players put the blame on public sector insurers for still low and unsustainable rates prevailing in the market.
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“Taking advantage of their huge balance sheets, public players have been offering covers at unsustainable rates. Due to competition from the large insurance companies and new entrants, rates have not risen,” said a senior executive of a large private sector general insurance company.
United India posted a growth rate of 21 per cent in the last financial year, whereas other two public insurers New India and National reported single-digit growth. Oriental Insurance moved ahead of National India and became the third largest non-life player by reporting 19 per cent growth in gross premium income. The two large private sector players— ICICI Lombard and Bajaj Allianz— registered a drop in premium collection during 2009-10.