General insurance companies saw their gross direct premium rise by 10% to `41,063.61 crore in the April-June quarter. However, in the month of June, premiums for general insurers recorded a negative growth of 0.26% at `12,936.97 crore. Market participants say the dip in premiums is largely due to the decline in vehicle sales in India.
Among the 25 general insurer players, New India Assurance, Oriental Insurance and United India Insurance saw positive growth in the last quarter, but National Insurance saw decline of 12.44% in the same time frame, show the data from Insurance Regulatory and Development Authority of India (Irdai).
“Since motor insurance is the important part of the non-life insurance industry, poor car sales number have impacted the business. However, health portfolio continues to grow which is important for the industry,” a retail head of an insurance company said.
Motor insurance, which includes third-party and own damage combined, has a market share of around 38-40%, followed by health insurance which has a market share of around 30%.
New India Assurance continued its dominant position in the industry with market share of 17.38%. The combined market share of public-sector insurers as in June stood at 42.22%. While in private-sector ICICI Lombard remained at top with a market share of 8.49% as in June, their gross direct premium for the last quarter stood at `3,486.87 crore against `3,774.17 crore in the corresponding previous quarter, a fall of 7.61%.