Private competitors gain market share from PSU general insurers.

Because of the aggressive private enterprises that are stepping up their competitiveness, public sector general insurers have once again lost market share. The total market share of PSU insurers decreased from 32.76 percent in September 2022 with a growth rate of 6.43 percent to 31.99 percent in September 2023 with a growth rate of 12.16 percent.

According to data from India's insurance regulator, private general insurers increased their combined market share to 53.58 percent by September 2023 with a growth rate of 21.13 percent, compared to a market share of 50.81 percent in September 2022 with a growth rate of 21.33 percent.

With a market share of 13.09 percent, state-owned New India is the biggest insurer, followed by ICICI Lombard (8.67 percent) and Bajaj Allianz (7.39%). With a growth rate of 18.45%, the aggregate market share of these top 3 insurers is 29.46%. As of September 2023, eight insurers held a market share of more than 5% of all domestic non-life premiums. The Insurance Regulatory and Development Authority of India (IRDAI) stated that by September 2022, the non-life market had underwritten a gross premium of Rs 143,802 crore with a growth rate of 14.86 percent as opposed to Rs 125,194 crore with a growth rate of 15.30 percent.

The non-life insurance sector reported premiums of Rs 23,814 crore for October 2023, an increase of a more moderate 13.6% over the previous month's 29.1% (growth had slowed) and 18.5% over October 2022.

With a share of 37.57 percent, the health segment is the largest non-life segment. It is followed by the motor (28.40 percent) and crop insurance (11.41%) segments. As of September 2023, the growth rates for marine cargo, marine hull, crop insurance, and liability (total) were all negative.

IRDAI reports that as of September 2022, the non-life industry underwrote a gross premium of Rs 54,030 crore under the health segment, growing at a rate of 24.43 percent, as opposed to Rs 43,421 crore, growing at a rate of 17.92 percent. In the health sector, PSU general insurers' market share dropped from 45.75 percent in September 2022 with an 11.30 percent growth rate to 40.41 percent as of September 2023 with a growth rate of 9.92 percent.

According to industry experts, the main driver of the non-life insurance market's development is still health insurance premiums.


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