October was slack season for non-life risk players

The non-life insurance industry is facing a downturn and growth in the segment has nosedived to 8.7 per cent in October against 13.2 per cent in the previous month.

The industry recorded a 11.4 per cent growth in the previous month. The private sector's market share also seems to have stabilised at 14 per cent.

According to data provided by the Insurance Regulatory Development Authority (Irda), accretion of fresh premium in October stood at Rs 96 crore against Rs 142 crore in the previous month.

Accretion in August was to the tune of Rs 117 crore. Although the public sector non-life players managed to increase their premium income by Rs 40 crore thus recording a 3.9 per cent growth, the private sector players increased it by Rs 56 crore "" a 48 per cent growth rate in October.

Among private players, ICICI Lombard with a fresh accretion of Rs 24 crore topped the list followed by Bajaj Allianz at Rs 14 crore. Iffco-Tokio and Reliance witnessed a negative growth against previous corresponding periods.

Royal Sundaram and Tata AIG recorded marginal accretion levels of Rs 3 crore and Rs 4 crore, respectively. Export Credit Guarantee Corporation (ECGC) on the other hand recorded a Rs 16 crore premium income on a base of Rs 19 crore.

The slowdown in growth rate for October has pulled down the overall growth rate till the month to 11.6 per cent against 12.4 per cent up to September 2003.

Out of the total premium income of Rs 950 crore, by October 2003, the public players have contributed Rs 380 crore "" a 5 per cent growth on a yearly basis while the figure for private players was Rs 570 crore "" a 80 per cent growth. National Insurance alone among the public sector players has contributed Rs 270 crore.