Market share of private insurers in non-life business has increased marginally to 44% in first three quarters of FY 2013-14 on account of new premium collection from motor insurance segment, shows a latest IRDA data.
The 17 private general insurance companies have contributed close to 54% in new business premium collection by collecting Rs. 13,094 crore in April-December 2013 compared to Rs. 11.482 crore of public insurers in the corresponding period last year.
Both motor and health insurance segment account for a whopping 66% of non-life insurance business during the first three quarters of FY 2013-14. Motor insurance segment accounted for 44% of general insurance business whereas health insurance contributed 22% of non-life premium collection for April-December 2013.
While the motor insurance segment has recorded a healthy growth of 16% in premium collection by collecting Rs. 24,576 crore in April-December 2013 as compared to Rs 21,133 crore in the corresponding period last year, some insurers feel that the loss ratios of motor insurance policies are still very high. However, IRDA has proposed a steep hike in motor insurance premium which would likely to be implemented soon.
The health segment has collected Rs. 12,608 crore in April-December 2013 against Rs. 11,165 crore in the corresponding period last year, a growth of 13%. Experts attribute this to increasing insurance penetration and rising cost of health insurance.
Meanwhile, Public insurers have continued their dominance in health insurance space. The four general insurance company have mopped up Rs. 7575 crore or 60% of total collection. However, the four standalone companies – Max Bupa, Star Health, Apollo Munich and Religare Health collectively saw 30% growth in their new business premium collection in April-December 2013 compared to last year.
Baring aviation insurance segment, the market share of all other sector grew during April-December 2013. Experts attributed this slowdown in aviation insurance to sluggishness in tourism and hospitality sector.
IRDA data shows that private insurers have collected Rs. 24,818 crore during the first three quarters whereas public insurance companies collected Rs. 31,569 crore in the same period. However, the market share of public insurance companies in non-life business has declined by a marginal one percent to 50%.