The three PSU insurers -- New India Assurance, United India and Oriental Insurance -- managed a meagre 2-4 per cent growth in business and eroded their market shares, while private players grew by 70 per cent to grab over 14 per cent of the general insurance market during 2003-04.
ICICI Lombard posted 135 per cent growth in business at Rs 507 crore (Rs 5.07 billion) to topple Bajaj Allianz and emerge as the leading private player in 2003-04, according to data compiled by the Insurance Regulatory and Development Authority.
Stiff competition among PSUs and private players pushed up the general insurance business by 13 per cent with premium income rising to Rs 16,118 crore (Rs 161.18 billion) last fiscal.
The five PSUs contributed 85.79 per cent or Rs 13,828 crore (Rs 138.28 billion) of the business last fiscal compared to Rs 12,910 crore (Rs 129.10 billion) or 90.54 per cent of the market pie in 2002-03.
New India Assurance continues to dominate the industry although its market share came down to 24.99 per cent last fiscal from 27.50 in 2002-03.
The company grew by only 2.7 per cent in business at Rs 4,028 crore (Rs 40.28 billion) last fiscal compared to Rs 3,921 crore (Rs 39.21 billion) in 2002-03.
National Insurance outsmarted United India to become the second biggest insurer with a market share of 21.2 per cent last fiscal compared to 20.08 per cent in 2002-03.
The Kolkata-based insurer was the only exception among PSUs and posted a modest 19.33 per cent growth in premium at Rs 3,417 crore (Rs 34.17 billion) in 2003-04, compared to Rs 2,864 crore (Rs 28.64 billion) in the previous fiscal.
United India could manage a growth of 3.37 per cent by mopping up Rs 3,068 crore (Rs 30.68 billion) in premium. Its market share slipped to 19 per cent in 2003-04, from 20.81 in 2002-03.
Oriental Insurance also grew by a miniscule 3.1 per cent collecting Rs 2,869 crore (Rs 28.69 billion) in premium. Its market share also slipped to 17.8 per cent at the end of March 2004, from 19.52 per cent in 2002-03.
ECGC grew by 18.81 per cent with premium income at Rs 445 crore (Rs 4.45 billion) and a market share of 2.76 per cent.
Among the private players, seven companies posted hefty growth while Reliance General witnessed a fall in premium income.
ICICI Lombard topped the chart with a market share of 3.14 per cent followed by Bajaj Allianz (2.96 per cent), Tata AIG (2.2 per cent) and IFFCO Tokio (2.02 per cent).
Royal Sundaram, which turned around last fiscal, had a market share of 1.6 per cent while Reliance General has 1 per cent, HDFC Chubb (0.69 per cent) and Cholamandalam (0.6 per cent).
HDFC Chubb recorded the fastest 1,083 per cent growth in business followed by Cholamandalam (554 per cent) and ICICI Lombard (135 per cent). Other companies grew by less than 70 per cent.
