Public sector insurers regain some spoils in first quarter

In a reversal of trend, public sector general insurance companies which have been steadily losing market share to their private sector counterparts, have regain some lost ground in the first quarter of the current fiscal.

Data from Insurance Regulatory Development Authority (Irda) show that public sector companies have in fact regained as much as two per cent market share in the first quarter of the current fiscal.

The Irda data indicated that PSU managed to increase their share of the pie from 79 per cent April 2004 to 81 per cent by June 2004 end. While the private sector companies now hold around 19 per cent against 21 per cent in April.

In January 2004, private sector companies held around 14 per cent of the market, which increased to 21 per cent "" a seven per cent loss of market share for public sector companies.

The rise was propelled by only two public sector companies which regained market share while the rest three in sync with the trend, lost shares.

National Insurance which has adopted an aggressive marketing policy along with Export Credit Guarantee Corporation gained around 2.14 per cent and 1 per cent respectively. New India, United India and Oriental Insurance however continued to loose market share to their private counterparts.

New India lost as much as 1 per cent, while United India lost another 0.5 per cent. Oriental on the other hand lost another five per cent.

As many as five private sector general insurance companies out of a total of eight have lost their market shares to the public sector companies as well as to their competitors.

ICICI Lombard lost the largest share among the private players at nearly one per cent followed by Tata-AIG at 0.73 per cent for the first quarter of the current fiscal.

Companies like Royal Sundaram, IFFCO-Tokio and Cholamandalam lost, 0.09 per cent, 0.32 per cent and 0.14 per cent market share, respectively.

Companies having gained market shares were Bajaj Allianz, at 0.48 per cent, followed by HDFC Chubb at 0.18 per cent and Reliance General at 0.04 per cent.

ICICI Lombard however still holds the largest share among the private sector general insurance company at 4.53 per cent followed by Bajaj Allianz at 4.32.