General insurance companies saw their gross direct premium at Rs 1.27 lakh crore, a growth of 32% in financial year 2016-17. Sharp growth in the non-life sector was largely due to growth in health and motor insurance along with new crop insurance scheme, say market participants. Data from the Insurance Regulatory and Development Authority of India (Irdai) show that 18 private sector general insurers saw their gross direct premium at Rs 53,662.95 crore, up by 35.16% in the last financial year.
While four public sector insurers grew slower than the private players at 24.46%, getting a gross direct premium of Rs 59,357.92 crore. However, four public sector insurers continued their dominant position in the industry with a market share of 46.66% compared to 42.18% of the private insurers as on March 2017.
New India Assurance had the highest market share at nearly 15% and saw its gross direct premium at `19,065.07 crore, a surge of 25.85% in the last financial year. While among private sector insurers, ICICI Lombard had a market share of 8.43% and saw it grow 32.56% at `10,725.19 crore in gross direct premium.
According to the senior officials, general insurance sector has already received Rs 16,000-18,000 crore from crop insurance at the end of current financial year. Data from Irdai also show that, growth of specialised players like Agriculture Insurance Company of India (AIC) along with standalone private health insurers also saw strong growth in last financial year.
General insurance sector in the last few months has seen sustained growth and higher participation from private players compared to public sector insurers.
Mukesh Kumar, ED at HDFC ERGO General Insurance, said: “Growth has been very strong from crop insurance along with motor and health, which has helped us in the last fiscal. Crop insurance has helped industry register such a strong growth in the last financial year and we expect industry to grow at 18% even in this financial year.”
HDFC ERGO saw its gross direct premium at Rs 5,840.19 crore – a growth of 72.81% in 2016-17.
Apart from general insurance, stand alone health insurance companies also saw a surge in their premium at 41.12% in the 2016-17. “Motor and health were two major categories of growth for the general insurers, but we believe crop insurance is likely to emerge as one of the important categories for general insurers in the next few years,” said a senior official from a leading public sector insurance company.
