Non-life insurers see mixed fortunes amid slower retail growth

The overall Gross Written Premium (GWP) growth for the non-life insurance industry was moderate at 11 per cent in September. Growth in key retail segments such as motor and retail health was lower at 7-8 per cent. Strong growth in commercial lines, as per Kotak findings, has supported overall premium growth for the industry.

Fire premia were up 32 per cent in September and 21 per cent so far, likely driven by a better pricing environment. PSUs remain aggressive in the fire segment, gaining 620 bps market share to 42 per cent. It was a strong month for the crop business, up 23 per cent.

Although the overall industry-level growth remains moderate for non-life players, competitive intensity appears to be waning, especially from the smaller private players.

Go Digit and Niva Bupa have reported significant moderation in GWP growth to 10 per cent and 1.4 per cent. Bajaj General and Star Health have gained market share, growing at 31 per cent and 9.2 per cent during the month, whereas ICICI Lombard reported moderate 8 per cent growth.

Smaller players are slowing down, likely due to month-end pressure.

However, Bajaj Allianz fares better than peers. It reported 31per cent GWP growth. The growth was largely driven by elevated government health premiums booked during the month. Adjusting for this, GWP growth was 13per cent in the period and 11per cent in H1. The growth was largely supported by fire, motor third party and group health. Retail health premiums declined 5per cent and motor own damage growth was muted at 5per cent.

Weakness in motor TP has dragged down overall growth for Go Digit, which reported muted 10per cent GWP growth and 17per cent GWP growth inQ2. Retail health, motor OD and fire reported strong 21-45per cent GWP growth, but weakness in motor TP dragged down overall premium growth.

ICICI Lombard has reported moderate growth. The insurer reported moderate 8 per cent GWP growth. Retail health and fire premiums grew at a strong pace of 25-36per cent during the month. Motor premium growth remains moderate at 6per cent despite a sequential pick-up from to +3 per cent GWP growth reported in the previous four months.

Star Health has maintained market share in retail health as it has reported moderate 9.2 per cent growth in retail health and 7.6 per cent in Q2, in line with the industry, up 8.4 per cent in September and 7.4 per cent in Q2. The company has maintained market share at 32.4 per cent in the retail health segment. Group health continued to decline.

Growth has moderated for Niva Bupa. Retail health growth for the insurer dipped to 2.6per cent and 5.7per cent in Q2. Group premia also declined 7per cent, leading to a 1.4per cent decline in GWP for the company; it was up 3.7per cent in Q2.