Public sector general insurers have again lost market share as competition from aggressive private players has been taken to a new level. The combined market share of PSU insurers declined to 31.99 per cent by September 2023 with a growth rate of 12.16 per cent, down from 32.76 per cent market share in September 2022 with a growth rate of 6.43 per cent.
On the other hand, private general insurers managed to increase their combined market share to 53.58 per cent by September 2023 with a growth rate of 21.13 per cent, while the market share stood at 50.81 per cent in September 2022 with a growth rate of 21.33 per cent. , according to data from India’s insurance regulator.
State-owned New India is the largest insurer with 13.09 per cent market share, followed by ICICI Lombard (market share 8.67 per cent) and Bajaj Allianz (market share 7.69 per cent). The combined market share of these top 3 insurers is 29.46 percent with a growth rate of 18.45 percent. Eight insurers have more than 5 per cent market share of total non-life domestic premiums by September 2023. “The non-life industry had earned gross premium of Rs 143,802 crore compared to Rs 125,194 crore, a growth rate of 14.86 per cent. With a growth rate of 15.30 per cent by September 2022,” the Insurance Regulatory and Development Authority of India (IRDAI) said.
Industry growth will be driven primarily by the health and motor insurance segments, supported by rising disposable income levels and growth in other segments. Meanwhile, the non-life insurance industry recorded premium of Rs 23,814 crore in the month of October 2023, up 13.6 per cent compared to the previous month’s growth of 29.1 per cent (growth on a low base) and 18.5 per cent. In October 2022, St.
The health segment is the largest non-life segment with 37.57 percent share, followed by motor (28.40 percent) and crop insurance (11.41 percent). Marine cargo, marine hull, crop insurance and liability (total) recorded negative growth rates till September 2023.
According to IRDAI, the non-life industry has earned gross premium of Rs 54,030 crore under the health segment with a growth rate of 24.43 per cent as against Rs 43,421 crore with a growth rate of 17.92 per cent till September 2022. In the health segment, the market share of PSU general insurers declined to 40.41 per cent by September 2023 with a growth rate of 9.92 per cent, down from the market share of 45.75 per cent in September 2022 with a growth rate of 11.30 per cent.
Industry observers said health insurance premiums remain the primary growth agent of the non-life insurance industry. “The group health segment continues to be the largest segment due to increased coverage and rationalization of premium discounts. However, this segment witnessed a decline in the month of October 2023 – mostly due to lower premiums collected by public sector companies,’ Care Ratings said in a report.
Government schemes grew rapidly in FY2024 and their share increased from 9.8 per cent to 11 per cent in FY2023 due to Ayushman Bharat and other medical schemes. Premiums over and above government schemes are generally concentrated with public sector general insurance companies. The overseas medical sector has returned to pre-pandemic levels due to increased international travel.
Under the health segment, private general insurers managed to increase their market share to 33.40 per cent by September 2023 with a growth rate of 45.97 per cent, while the market share stood at 28.47 per cent in September 2022 with a growth rate of 22.35 per cent. According to IRDAI data, standalone health insurers have achieved a growth rate of 26.41 per cent with a combined market share of 26.19 per cent in September 2023, while their market share stood at 25.78 per cent in September 2022 with a growth rate of 26.18 per cent.
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