Experts believe that the government’s
social security programme and the increasing number of health insurance agents have
driven the growth.
General insurance companies have performed well with an 18% growth rate in the new premium collection segment in the first quarter of FY13-14. Many experts attribute this performance to the increasing number of health insurance agents and government’s social security programme.
Data from IRDA states that the non-life insurers have collected Rs 19,516 crore in April-June 2013 against Rs 16,520 crore in the corresponding period last year. The 27 general insurance companies have collected Rs 5,963 crore in June 2013 compared to Rs 5,186 crore June last year.
The data also states that private non-life insurers have registered a growth of 26% by collecting Rs 8,732 crore in April-June, 2013 against Rs 6,939 crore in the corresponding period last year. The public sector insurers witnessed 13% growth by accumulating Rs 10,783 crore against Rs 9,580 crore in the corresponding period last year.
Among the PSU insurers, New India Assurance collected the highest premium of Rs 3,056 crore followed by United India which reported a premium income of Rs 2,658 crore.
ICICI Lombard General Insurance has topped the premium chart by registering a growth of 27% with premium collection of Rs 1,776 crore while Bajaj Allianz stood at 2nd position with premium collection of Rs1,086 crore. SBI General has shown a robust 115% growth in the premium collection by accumulating Rs 271 crore in Q1 FY13-14.
“The growth is driven by corporate business in April and motor insurance segment in May. However, the industry will witness a downfall in the near future due to tough economic conditions and decline in automobile sales,” says Krishnamoothy Rao, CEO, Future Generali.
DV Suresh of DVS Consulting asserts that the industry has performed well because of the increasing number of health insurance agents. He adds that life insurance agents are now selling health insurance products to the people. Also, IRDA had allowed some companies like Apollo Munich, Star Health and Max Bupa to exclusively carry out health insurance business which turned out to be a positive move.
“The social security schemes of state governments have boosted the health insurance business in India. He points out that the rise in premium collection is largely on account of renewal of insurance policies in the month of April,” says Harsh Roongta, Founder & CEO, Apna Paisa.