Private players double health insurance mart share in 2 yrs

Private insurance players have doubled their market share in health insurance in two years. Their market share has increased from 12 per cent in 2003-04 to 23.86 per cent in 2005-06.

The public sector giants are increasingly losing their market share "" from 88 per cent in 2003-04 to 81.79 per cent in 2004-05 to 76.14 per cent in 2005-06.

According to the provisional and unaudited portfolio performance of various general insurance players available with Insurance Regulatory and Development Authority of India (Irda), only New India Assurance, of the four public sector general insurance companies, was able to marginally raise its market share to 29.65 per cent for 2005-06 from 28.73 per cent in 2004-05.

The other three players "" United India Insurance, National Insurance and Oriental Insurance "" have lost their market share.

National Insurance's market share declined from 19.08 per cent in 2004-05 to 14.64 per cent in 2005-06. The share of United India Insurance declined from 17.60 per cent to 15.91 per cent, while that of Oriental Insurance dipped from 16.38 per cent to 15.94 per cent.

Among the private players, Tata-AIG General lost market share from 1.60 per cent in 2004-05 to 1.36 per cent in 2005-06, Reliance General from 0.48 per cent to 0.38 per cent and Cholamandalam from 1.20 per cent to 0.94 per cent.

The total premium income of the health insurance portfolio in the non-life market grew by 35 per cent for 2005-06 at Rs 2,257.54 crore compared to a growth of 28.6 per cent in 2004-05 at Rs 1,668.65 crore.

Deepak Mendiratta, managing director of Health and Insurance Integrated, a broking firm for healthcare providers, said, "There has been a reduction in the growth of health insurance for public sector companies. However, with detariffing coming in, these players will redesign their product offering to make it more attractive and profitable. We have seen Oriental Insurance filing its products with Irda as well as increasing its premium rates."

According to Sandeep Bakshi, managing director and CEO, ICICI Lombard, "We are witnessing the start of the growth phase in health business, which will accelerate in the coming times."