Private general insurance players have wrested some market share from public sector companies as witnessed in the case of the banking sector in the fiscal year 2022-23 (FY23).
The four public sector general insurers, New India Assurance (NIA), United India Insurance, Oriental Insurance and National Insurance Company, with a total premium of Rs 82,895 crore (Rs 75,132 crore in FY22) have reported a cumulative market share of 32.27 per cent, down from 34.03 per cent in FY22.
However, private sector general insurers including five stand-alone health insurers (SAHIs) with a total premium of Rs 158,182 crore during the year ended March 2023 (Rs 130,420 crore in FY22) expanded the total market share to 61.56 per cent from 59.16 per cent in FY22, according to figures released by the General Insurance Council.
There is now a new ranking order emerging with two private sector general insurers entering into the top-five league of the industry by replacing public sector general insurers. In FY 23, the top five general insurers of the country were – New India Assurance (Rs 34,487 crore premium income with a growth of 6 per cent), ICICI Lombard General Insurance (Rs 21,000 crore premium, 17 per cent growth), United India Insurance (Rs 17,643 crore, 12.22 per cent), HDFC Ergo general insurance (16,635 crore, 23.25 per cent), Oriental Insurance Company (Rs 15,609 crore, 14 per cent). “FY23 has seen the market share of the four public sector general insurers for the first time have fallen below 33 per cent. However, the market has expanded and there’s room for growth for everyone,” said an industry official.
“The regulator should step in to halt the corrupt practices like cash distribution and illegal commissions of brokers, agents and companies for the healthy growth of the sector,” said the official who preferred anonymity. Led by state owned NIA, India’s general insurance industry has grown its gross premium year on year (y-o-y) by 16.41 per cent to close the FY23 with record premium of almost Rs 2.57 lakh crore, according to figures released by General Insurance Council. The health insurance segment is on track to breach the Rs 1 lakh crore mark in FY24 with the growth being driven by the popularity of health insurance products and schemes amid the expected rise in per capita and disposable income levels. While Covid pandemic has receded in the country, the health insurance has maintained its grip over the general insurance industry by replacing the motor portfolio to be the largest business segment for the second year in FY 2022-23.
The health insurance portfolio has garnered over Rs 90,667 crore, showing a growth of 23.19 per cent against the motor portfolio that has generated a premium of Rs 81,291 crore, up 15 per cent in FY 2022-23, according to figures released by the General Insurance Council. Health insurance constitutes over 35% of total non-life premium in FY 2022-23.
The five SAHIs with a total premium of Rs 25,455 crore (Rs 20,089 crore in FY 2021-22) have a total market share of 28.08 per cent in the health segment during FY 2022-23. “Group health segment has witnessed growth primarily due to the rationalization of discounts in premiums. Further, retail health segment growth looks to be normalising post the pandemic. Government schemes have increased their share in FY22 and FY23 compared to FY21 due to the Ayushman Bharat scheme and other medical options made available due to pandemic-induced awareness,” said a Care Ratings report.
The FY23 premium growth of the SAHIs continues to be higher than the industry average. This has led to SAHI holding 28 per cent of the health insurance market (increasing their share from 26.8 per cent in FY21). Interestingly, private players and SAHIs have a similar share in FY23, while public peers have grown at a slower pace.
© The Indian Express (P) Ltd
First published on: 08-05-2023 at 04:23 IST
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