Bengaluru, Jan 16: The non-life insurance industry grew 18% to Rs 1.5 lakh crore in 2017-18 from Rs 1.3 lakh crore a year ago. Growth rates dropped from 33% in FY17 when the government’s new crop insurance scheme triggered a spike in non-life premium.
State-owned companies saw their market share dip to 45% from 47%. New India Assurance was the only PSU to increase its share to 15% in FY18. ICICI Lombard continued to top private insurance in premium income, despite its market share falling to 8.2% from 8.4%.
Non-life insurers sold 1,708 lakh policies in FY18 – up 10% from 1,543 lakh.
The growth was driven by private companies which registered a 26% increase in policy numbers as against PSUs, which saw sales shrink by 5.8% in terms of number of policies.
Motor premium, the largest segment, grew 18% to Rs 59,246 crore. The highest growth in premium came from health insurance which surged 22% to Rs 41,981 crore.
Fire grew by 13% to 10,781 crore, while marine declined 0.7% to Rs 2,895 crore. Other insurance lines – which includes crop insurance – saw 19% growth to Rs 77,741 crore and now forms 52% of total business. It was earlier reported that crop insurance, after the launch of Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016, contributed to the highest growth (32%) the industry has seen since liberalisation. Of the 32% growth, industry experts said 16% came from crop insurance.