Slackness in automobile industry, impact of rupee depreciation on travel insurance business and stiff competition in health insurance segment resulted in decline in new business premium collection among non-life insurance companies. The industry’s premium collection growth dipped to 14% in April-Sept, lowest since April 2013.
|
Period FY 2013-14 |
Overall Industry Growth in % |
Growth in %-Private Insurers |
Growth in % - Public Insurers |
|
|
Average Growth of Previous FY |
19 |
24 |
16 |
|
|
April |
22 |
31 |
15 |
|
|
April-May |
20 |
28 |
13 |
|
|
April-June |
18 |
26 |
13 |
|
|
April-July |
17 |
24 |
12 |
|
|
April-August |
16 |
22 |
12 |
|
|
April-September |
14 |
20 |
10 |
KG Krishnamoorthy Rao, CEO, Future Generali General Insurance says, “Since non-life insurance business depends on GDP growth, the industry has witnessed a decline in its new business premium collection. Engineering, fire and marine insurance business which collectively contribute 21% in premium collection recorded a sharp downfall due to lack of new projects and slump in import/export business. Also, loss ratio in travel insurance business is widening because of rupee depreciation.”
“Stiff competition in health insurance segment and slowdown in automobile business has affected the growth in non-life business. However, we are of the view that industry will recover and maintain its average growth of 19% by last quarter of FY 2013-14,” states, R Chandrasekaran, Secretary General of General Insurance Council (GIC).
IRDA data shows that the general insurers have collected Rs 38,718 crore in April-September 2013 as against Rs 33,891 crore in the corresponding period last year. The 27 companies have collected Rs 6,409 crore in September 2013 compared to Rs 6,068 crore last year.
The data also states that private non-life insurers have registered a growth of 20% by collecting Rs 16,817 crore in April-September as against Rs 14,015 crore in the corresponding period last year. The public sector insurers have witnessed 10% growth by accumulating Rs 21,901 crore in first half of FY 2013-14 against Rs 19,875 crore in the corresponding period last year.
Among the PSU insurers, New India Assurance collected the highest premium of Rs 5,729 crore followed by United India which reported a premium income of Rs 5,100 crore.
Among private insurers, ICICI Lombard General Insurance has topped the premium chart by registering a growth of 19% with premium collection of Rs 3,404 crore while Bajaj Allianz stood at second position with premium collection of Rs2,209 crore till September 2013.