June 20, 2015
India’s general insurance sector reported a 12.3% growth in gross premium collection at Rs 16,326 crore for the first two months of the fiscal, as per released by the General Insurance Council (GIC) on Friday.
Four state-run general insurers recorded a 11% growth in premium to Rs 8,567 crore in the first two months of the fiscal till May 31, it said. These companies also expanded their market share to 54%, it said.
Seventeen private sector general insurers, excluding the five specialised health insurers, have grown their topline by 11.7% to Rs 6,948 crore, it said.
“The May figures for the industry, showing 125 growth is looking good. First two months are promising. June is also likely to be positive driven by the revival of industrial growth. We are likely to witness a positive growth for the month of June too,” GIC Secretary General R Chandrasekaran told PTI.
Five specialised health insurers have maintained their high pace of growth at Rs 500 crore, up by 47.5% until May.
With premium collection of Rs 3,340 crore, private sector companies in the motor insurance space beat public sector companies, which collected Rs 3,096 crore.
The private sector has been the preferred option for motor cover under the damage segment, while the public sector insurers have become the preferred choice for third party cover, which has been made mandatory by the regulator, Insurance Regulatory and Development Authority.
In marine cargo too, private sector general insurers have mobilised higher premium at Rs 315 crore than their peers in the public sector which collected a premium of Rs 233 crore until May, the data showed.
“The general insurance industry’s growth in May is more or less in line with last year’s growth rate of 10%,” Reliance General Insurance Chief Executive Rakesh Jain said, adding that, “With economic activity growing, the industry’s growth is also likely to accelerate in the remaining part of the current fiscal”.
However, in the health insurance segment, at Rs 2,877, public sector general insurers are way ahead of private sector general insurers which recorded a premium of Rs 1,174 crore in the first two months of the fiscal.
In the fire insurance portfolio, private sector insurers at Rs 1,156 crore scored slightly higher than public sector general insurers which collected a premium of Rs 1,126 crore until May, data showed.
Similarly, private sector general insurers with better strategies have earned higher premium at Rs 228 crore than public sector general insurers (Rs 140 crore) till May in liability portfolios dealing with products like director and officers’ policy, as well as cyber security cover which has started picking up in the country, data showed.
The premium growth of specialised insurers like Export Credit and Guarantee Corporation and Agriculture Insurance Corporation remained almost flat during the first two months of the current fiscal, according to the data.