Change in the pecking order of Indian Non-life insurers
The General Insurance Council has published the Gross Direct Premium figures of the Indian non-life insurance sector for 2020-21. At Rs.1,98,000 crores, the industry has grown @ 5% during the pandemic plus lockdown periods from April 2020 as compared to 2019-20.. Health insurance has been a major growth driver and hence for the purpose of our analysis, standalone health insurance companies are taken into account. Left out are AIC & ECGC.
Since Indian insurers thrive on top-line numbers and their ranking among peers month-on-month, quarter-on-quarter, GDP alone has been considered of the Top 10 non-life insurers for 2019-20 & 2020-21. Is profitability not important for an insurer one may wonder? It sure is, but the general mood among insurers is -- ' Build up the top-line and then underwriting corrections can be made for bottom-line improvement. Based on GDP for 2019-20 & 2020-21, the Top 10 insurers are as under:
2019-20 ( Rs.Crores)
Rank Insurer GDP
1 New India 26813
2 United India 17515
3 National 15262
4 Oriental 13672
5 ICICI Lombard 13312
6 Bajaj Allianz 12779
7 HDFC Ergo 9629
8 IFFCO Tokio 7961
9 Reliance 7465
10 Tata AIG 7384
2020-21 ( Rs.Crores)
Rank Insurer GDP
1 New India 28481
2 United India 16710
3 National 14180
4 ICICI Lombard 14003
5 Bajaj Allianz 12569
6 Oriental 12452
7 HDFC Ergo 12295
8 Star Health 9353
9 IFFCO Tokio 8410
10 Reliance 8310
A comparison of the two sets of data reveals that there has been a change in the pecking order among insurers and this trend will continue as some companies will outpace others for a while and then fall by the wayside, while some will show consistency.
The Top 3 positions in both years are held by New India, United India & National respectively. Consistency? Yes, as far as New India goes but the other two hang on to their positions despite de-growth in 2020-21. The other government-owned insurer, Oriental which was fourth in 2019-20 has slipped two places down to sixth in 2020-21 on the back of a steep de-growth. So 3 of the 4 government-owned insurers showed de-growth which is not a healthy sign, unless they are being forced to shore up their fortunes by being more stringent in underwriting and letting go off inferior quality risks. Not sure if this is the case.
ICICI Lombard & Bajaj Allianz move up one position each from 5th & 6th to 4th & 5th respectively. While ICICI Lombard had a small positive growth in 2020-21, Bajaj Allianz de-grew in 2020-21 but as their de-growth was considerably lower than that of Oriental, they climbed the ladder. HDFC Ergo posted very strong growth in 2020-21 but in terms of ranking, remained where they were at 7th. IFFCO Tokio & Reliance who were at 8th & 9th slipped one place each to 9th & 10th despite decent growth during the year. Then why the decline? Star Health which was not in the Top 10 in 2019-20 came in like a shooting star and occupied the 8th position on the back of premium accretion of around Rs.2500 crores and a growth rate of 36%. So Tata AIG, despite decent growth in 2020-21 fell out of the Top 10. What is more, they have lost one more position and ended the year at No.12 with SBI General moving into 11th position. SBI General is closing in on both Reliance & IFFCO Tokio and should end 2021-22 in the Top 10. Looks like the pecking order would change more drastically by the end of 2021-22. Let us wait and watch.
Managing Director, Abhivridhi Insurance Brokers PL Director & Honorary Secretary - IBAI
3ySurprising to see even after IIB rates where the property premium in an average doubled and surge in health insurance did not make an impact. 5% growth is a pittance
Retired GI professional, open to look at mentoring / claim related roles (currently self employed )
3yinteresting analysis this .. the gap between nos 9 and 10 ( as also 11 and 12 not listed here ) is not much so remains to be be seen who moves up or down in 21-22, when the spectre of Covid continues at least for H1 , by the way things are going on . Also need to note that , acquisitions by ICICI - L and HDFC - E of Bharti Axa and Apollo Munich , taking full effect in 20-21 , would have certainly helped them in them moving up this year to whstever extent. Similarly any M& A during 21 -22 too can influence the movements .
Business Head | Non-Life Insurance | Agency & Broking Management Specialist | Start-up Champion | Strategy Planning | Digital Technology
3ySir, are there figs available without crop as well?
Retired open to discussions
3yIt surprises me top line counts and not bottom line which shows profit/loss.
Principal Officer
3yThanks for sharing