Gross premium of non-life insurers grows 18% in Q1
Total direct insurance premium underwritten for general insurance companies reported a 15 per cent increase year-on-year to INR 20,452 crore in June this year, compared to ₹17,809 crore in the same period last year, according to the data. from the General Insurance Council. .
Total direct premium for 24 non-life insurers grew by 13 per cent at Rs 17,638 crore in June 2023, versus Rs 15,639 crore in June 2022, while for the five independent health insurers, it grew by 24 per cent at 2,475 crore versus INR 2,003 crore. Two specialist insurers – Indian Agricultural Insurance Company Limited and ECGC – have more than doubled their total combined premiums at Rs.339 crore (Rs.167 crore in June 2022).
For the first quarter of FY24, total gross written premiums for general insurance companies grew by 18 per cent year-on-year at Rs.64,263 crore, compared to Rs.54,489 crore for the same period in FY23.
Total written premiums for the 24 non-life players grew 16 per cent annually at Rs 56,917 crore (Rs 48,860 crore in Q1 FY23), while for the five independent health insurers, premium was up 27 per cent at Rs 6,657 crores (₹5,261 crores in Q1 FY23).
In the first quarter of this financial year, with the exception of two players at PSU – New India Assurance Co Ltd and United India Insurance Co Ltd – most other non-operating life companies reported double-digit growth in gross guaranteed directors premiums (GDPW). Navi General Insurance and Raheja QBE posted lower GDPs.
However, PSU’s New India remained the market leader in the non-life segment with a wide gap, and saw a gross domestic product of ₹10,000 crore in the first quarter of this financial year. The company’s GDP grew by 9 per cent at Rs.10,378 crore, compared to Rs.9,550 crore in Q1 FY23. The second largest player in PSU, United India’s GDP grew by 7 per cent at Rs.4,593 crore (4,309 crore).
ICICI Lombard General Insurance was the second largest player after New India in the first quarter, and its GDP grew by 19 percent year-on-year at ₹6,387 crore (₹5,370 crore).
Bajaj Allianz took second place among special players not connected to life and saw its gross domestic product increase by 22 per cent at ₹3,789 crore (₹3,100 crore). HDFC Ergo, the third largest player in the private sector category, reported an 11 percent increase in its GDP at ₹3,422 crore (₹3,073 crore).
star performer
Star Health retained its number one position in the health insurance sector, and its GDP was significantly higher than that of many private non-life players. Star Health’s gross domestic product was ₹2,948 crore in the first quarter of this financial year, compared to ₹2,464 crore in the period last year, an increase of 20 per cent. Star Health’s market share increased to 4.59 percent in the non-life public sector, up from 4.52 percent last year. In the health category, its market share reached 44 percent.
Care Health was the second largest player in health and its GDP grew by 33 per cent at ₹1,454 crore (₹1,096 crore).
All five health players managed to increase their market share during the period from April to June 2023, and the combined market share of all health players was in double digits at 10.36 percent from 9.66 percent in the first quarter of the last fiscal year.
The combined market share of all extra-life players (excluding healthy players) saw a marginal decline to 88.57 percent from 89.67 percent over the period.
The Indian non-life insurance market will grow by 13-15 percent in the medium term. A recent report by CareEdge said the health insurance sector is on track to breach the ₹1-lakh crore mark, while auto premiums cross ₹85,000 crores in FY24.