Non-life premium excels

Venkatachari Jagannathan
07 August 2003

Chennai: The general insurance industry as a whole booked a gross premium income of Rs 1,220 crore during May 2003, registering an increase of Rs 92 crore, compared to the corresponding month in the previous year.

According to the figures released by the Insurance Regulatory and Development Authority (IRDA) the public sector companies shared a lion's share of the market with a premium income of Rs 1,065 crore while the new private players were able to garner just Rs 155 crore during May 2003.

The first two months of the current year saw the government insurers booking Rs 2,647 crore as against the private sector's Rs 448 crore. What will be interesting to note is the net premium booked by the players, as that really shows the underwriting capacity of the insurers.

Among the government companies, New India Assurance continued to maintain its lead (it is also the industry leader) with a premium income of Rs 764 crore and is followed by United India Insurance (Rs 628 crore), Oriental Insurance (Rs 611 crore) and National Insurance (Rs 582 crore). The Export Credit Guarantee Corporation of India (ECGC) earned Rs 59.36 crore till May 2003.

New India, however, lost Rs 13-crore worth of business during the first two months while the other government companies show an increase in business. Curiously, National Insurance with a premium income of Rs 236 crore in May 2003 earned Rs 7 crore more than Oriental Insurance. National Insurance had overtaken Oriental Insurance last year to the third place.

At the market place, the entry of brokers has affected the government players to a large extent in respect of corporate accounts. The government companies are inking bancassurance deals with nationalised banks, a strategy that will start paying off this year.