FY22: Pvt insurers achieve market share, well being prime portfolio

Coming out of the stress created by the Covid-19 pandemic, the home common insurance coverage trade — led by state-owned New India Assurance (NIA) — has ended FY22 with a premium of Rs 2.20 lakh crore, up 11 per cent over Rs 1.98 lakh crore premium mobilised in FY21.

However, newest Insurance Regulatory and Development Authority of India (Irdai) information exhibits that personal gamers are quick gaining market share and catching up with 4 public sector gamers which hitherto dominated the sector. Thanks to the pandemic and stagnant motor third social gathering premium for the final two years, in FY22, well being portfolio has toppled the motor enterprise to change into the biggest phase within the trade for the primary time within the historical past of Indian common insurance coverage trade.

The complete well being premium of the trade has risen by 26 per cent to Rs 66.167 crore (Rs 52,689 crore within the 12 months in the past) until February 2022 whereas complete motor premium (personal harm and motor third social gathering motor premium) has expanded solely by 3.62 per cent to Rs 63,052 crore (Rs 60,851 crore a 12 months in the past) through the interval.

Crop insurance coverage premium, which has fallen by 5 per cent to Rs 26,654 crore until February 2022, continues to be the third largest portfolio of the Indian common insurance coverage trade. While NIA raised its market share to 14.76 per cent (14.33 per cent in FY21), all 4 major line common insurers — NIA, National Insurance, United India Insurance (UII), Oriental Insurance and National Insurance — misplaced 212 foundation factors of their market share to non-public gamers and have a complete share of 34 per cent as of FY22-end. Five standalone personal medical insurance corporations, led by Star Health & Allied Insurance Company, noticed a 32.53 per cent rise in gross direct premium earnings in FY22 to Rs 20,880.08 crore towards Rs 15,755.18 crore a 12 months in the past.

For the primary time, personal participant ICICI Lombard General Insurance, with a premium of Rs 17,976 crore emerged India’s second largest common insurer. ICICI Lombard, with a market share of 8.15 per cent, had acquired Bharti Axa General Insurer in 2020-21 that helped it seize the second place within the trade, analysts stated.

PSU common insurers, like Chennai-based UII with a premium of Rs 15,780 crore in 2021-22 (Rs 16,704 crore in 2020-21) and Delhi-based Oriental Insurance with a premium of Rs 13,700 crore (Rs 12,449 crore a 12 months in the past), have retained their third and fourth positions, respectively. However, Pune-based Bajaj Allianz General Insurance, with a premium of Rs 13,688 crore in 2021-22 (Rs 12,569 crore in FY21) is quick catching up with Oriental Insurance. Another personal insurer HDFC Ergo General Insurance, with a premium of Rs 13,500 crore (Rs 12,569 crore in 2020-21), can be advancing quickly.

Analysts level out that with three of the general public sector common insurers, UII, National Insurance (with a premium of Rs 13,123 crore in FY22 towards Rs 14,140 crore a 12 months in the past) and Oriental Insurance trimming their topline progress to be worthwhile, the final insurance coverage trade will see a little bit of churn in rankings with extra personal sector gamers occupying prime 5 positions in a single or two years. NIA, the biggest Indian common insurer with operations in 27 nations, has closed the fiscal with a home premium of Rs 32,569 crore as towards Rs 28,548 crore in FY21.

Together with its abroad premium, NIA might finish the fiscal with Rs 36,000 crore of complete premium. According to insurance coverage regulator Irdai, 24 common insurance coverage corporations (excluding well being and agri insurers) registered an 8.79 per cent enhance of their mixed gross direct premium throughout 2021-22 at Rs 1,84,775.17 crore towards Rs 1,69,844.68 crore within the earlier fiscal.

The two specialised PSU insurers — Agricultural Insurance Company of India Ltd and ECGC Ltd — posted a 14.22 per cent rise of their collective gross premium to Rs 14,979.47 crore in comparison with Rs 13,114.85 crore in FY21.