Private life insurers have surpassed the Life Insurance Corporation (LIC) of India in premium growth in August, the Insurance Regulatory and Development Authority of India (IRDAI) said in its monthly report. The Life insurance industry's individual annualised premium equivalent (APE) rose 14 per cent year-on-year in August. In contrast, private insurers saw a 21 per cent YoY growth in individual APE.
The data shows that LIC recorded a modest 3 per cent YoY growth in individual APE.
Private insurers Bajaj Allianz General Insurance and Tata AIG General Insurance outperformed their competitors in the public and private sectors in premium growth last month, IRDAI said. The insurance industry collected a total premium of Rs 19,291 crore, an increase of 12.80 per cent, in August, compared to the same month the previous year.
Bajaj Allianz General Insurance recorded a remarkable 64 per cent growth in gross written premium, while Tata AIG General Insurance saw a 26 per cent increase in premium collection. In contrast, the state-owned insurance company New India Assurance, despite being listed, saw a modest 2.63 per cent growth in their premium collections.
Insurance analysts believe that the increase in the number of policies played a significant role in driving the private players’ premium growth.
Slowdown In General Insurance Premiums
However, the pace of growth in general insurance premiums decelerated in August compared to July. Private insurers saw a notable slowdown, with their YoY growth rate decreasing from 26 per cent to 16 per cent, while state-run insurers managed a modest five per cent growth.
Some standout performers among the unlisted general insurers were Bajaj Allianz, which achieved an impressive 64 per cent YoY growth, and Tata, with a 26 per cent growth rate. SBI General reported a 17 per cent decline during the same period.
Among the mid-sized insurers, Chola Insurance stood out with a remarkable 37 per cent YoY growth, while standalone health insurers collectively saw a 26 per cent increase, with Star Health growing by 19 per cent. ICICI General Insurance's premium growth also saw a slight dip in August, recording a 16 per cent YoY increase compared to the 22 per cent growth in July. Nonetheless, it remained ahead of the industry in terms of growth.
Market Share
Max Life and SBI Life led the way in improving market share in August. Max Life increased its market share in the APE segment by 142 basis points (bps) YoY or 6.2 per cent. On the other
hand, SBI Life added 259 bps, securing a 17.6 per cent market share. HDFC Life saw a more modest increase of 15 bps, bringing its market share to 11.5 per cent, while ICICI Prudential Life saw a decline of 11 bps year-on-year, settling at a 6.1 per cent market share.
Meanwhile, LIC saw a substantial decrease of 355 bps in its market share; however, it still maintained a dominant position in the individual APE market with a 32.1 per cent share.
