Published 16:19 IST, August 21st 2023
Health, motor segments propel premium growth in insurance sector
The growth in the health sector was driven by a 93% YoY surge in the government health business.
The insurance sector witnessed robust growth, with a 13 per cent year-on-year (YoY) increase in gross written premium (GWP) totaling Rs 26,500 crore.
This surge was on the back of substantial expansion in the health segment, which experienced an impressive 33 per cent YoY rise, and the motor segment, which registered a healthy 15 per cent YoY growth, according to a report by Motilal Oswal.
The growth in the health sector was driven by a 93 per cent YoY surge in the government health business. In contrast, marine and commercial lines reported relatively stagnant growth.
Private multi-line players, including Standalone Health Insurers (SAHIs), displayed strong performance, achieving a GWP of Rs 2,670 crore, indicating a 26 per cent YoY increase. The Public Sector Undertaking (PSU) players recorded a 5 per cent YoY growth, behind the industry's overall growth trajectory.
Major contributors
Among key players, ICICI Lombard General Insurance (ICICIGI) exhibited an impressive 22 per cent YoY growth in July 2023, surpassing the industry average. Similarly, STAR Health Insurance reported 17 per cent YoY growth.
Bajaj Allianz General Insurance's GWP showed a 51 per cent YoY increase, driven by growth in the government health segment. Meanwhile, New India Assurance reported a YoY growth of 9 per cent, the report stated.
The health segment had a 33 per cent YoY growth led by an 18 per cent YoY rise in retail health and a 19 per cent YoY growth in group health. Overseas health registered a 45 per cent YoY surge, while the government health segment soared by 93 per cent YoY. Private multi-line players within the health segment experienced a 131 per cent YoY increase.
Excluding the government health segment, the growth for private players in the health segment was 25 per cent YoY. Among SAHIs, STAR Health faced a weaker growth rate due to a softer 16 per cent growth in the retail health segment.
Growth in the motor segment
The motor business had a healthy 15 per cent YoY growth, driven by a robust expansion of 22 per cent YoY in the motor own damage (OD) segment. The Motor Third Party (TP) segment had subdued growth of 11 per cent YoY in July 2023.
SAHIs and private multi-line players collectively gained market share, while public players experienced a slight decline. ILOM reported a growth rate of 22 per cent YoY with a market share of 9.7 per cent. Bajaj Allianz recorded an impressive 51 per cent YoY growth and achieved a market share of 8.3 per cent.
New India Assurance's growth was 9 per cent YoY, along with a market share of 15.0 per cent. STAR Health's YoY growth was 17 per cent, maintaining a market share of 4.7 per cent.
Updated 16:22 IST, August 21st 2023