MUMBAI: The four public sector companies now account for less than a third of the non-life insurance market after losing 2% share in FY23. While the private sector has gained, the top companies have grown slower than the industry.
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According to industry data, the total non-life premium in India increased 16% from Rs 2,20,800 crore in FY22 to Rs 2,56,920 crore. One of the big drivers of growth was health insurance. Standalone health insurers grew 25. 7% to Rs 20,242 crore from Rs 29,867 crore last year.
Private sector insurance companies grew 20. 2% to Rs 1,31,940 crore from Rs 1,09,753 crore. The industry growth rate was dragged down by the public sector, which grew 10. 3% to Rs 82,895 crore from Rs 75,132 crore last year.
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Within the public sector, market leader New India Assurance grew the slowest at 5. 9%, which resulted in its share dropping from 14. 7% to 13. 4%. The other three companies National, Oriental and United India Insurance managed to growing double digits.
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In the private sector, growth was driven by the newer and smaller insurance companies such as Acko, Kotak, Go Digit, Zuno (formerly Edelweiss), Shriram, Liberty and Magma HDI General Insurance. Among the larger companies, Tata AIG General Insurance and HDFC Ergo grew the most.
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While segment-wise figures for the industry are not available, trends up to February 2023 show that the share of health in India’s non-life premium has gone up from 33% to 35% while that of motor insurance has dropped from 32% to 31%. Besides these two, fire or property insurance is the only segment that has a double-digit market share, which has remained unchanged at 10%.
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