ANNUAL REPORT 2007-08
The total number of policies issued by the general insurers in 2007-08 were 572.50 lakh as against 466.64 lakh in 2006-07 registering an increase of 22.69 per cent. Of the total policies issued, 32.67 per cent were by private insurers and 67.33 per cent by public insurers. While the growth in number of policies issued by public insurers was 13.47 per cent, the corresponding growth of private insurers was 47.36 per cent. Among the public insurers New India recorded a growth of 5.05 per cent and United India 48.41 per cent. There has been a decline in the number of policies underwritten by both National Insurance and Oriental Insurance.
PREMIUM UNDERWRITTEN BY NON-LIFE INSURER (WITHIN INDIA)
TABLE 17 POLICIES ISSUED : NON-LIFE INSURERS
Note: Figure in brackets indicate growth in per cent
Insurer Public Sector
Note: Figure in brackets indicate the growth (in per cent) over previous year.
The number of policies underwritten by the private insurers increased by 47.36 per cent as against 41.85 per cent in 2006-07. Cholamandalam MS registered the highest growth rate of 224.30 per cent and Reliance General registered a growth of 150.46 per cent during 2007-08.
The premium underwritten by 10 private sector insurers in 2007-08 was Rs.10991.89 crore as against Rs.8646.57 crore in 2006-07 exhibiting a growth of 27.12 per cent. The general insurance industry has added Rs.2918.27 crore in premium during the year 2007-08; of which public insurers contributed Rs.572.94 crore and the private insurers Rs.2345.32 crore. The increase in premiums was witnessed across all the public sector companies except Oriental. New India has added the highest premium of Rs. 259.72 crore followed by United India and National Insurance at Rs.240.79 crore and Rs.192.81 crore respectively. Oriental Insurance has shown a decline in its premium by Rs.120.38 crore. All the private insurers have reported increase in premiums during 2007-08. Reliance has added premium of Rs.1034.19 crore, and registered a growth of 113.36 over the previous year. Bajaj Allianz has added Rs.593.58 crore followed by ICICI Lombard with Rs. 318.05 crore added to their earlier premium levels.
The general insurance companies have underwritten a total premium of Rs.27823.74 crore in 2007-08 as against Rs.24905.47 crore in 2006-07 exhibiting a growth rate of 11.72 per cent. The four public sector insurers have underwritten a premium of Rs. 16831.84 crore in 2007-08 as against Rs.16258.90 crore in 2006-07 registering a growth of 3.52 per cent. The comparatively lower growth rate for the public insurers needs to be seen in the light of their high base.
The private insurers are increasing their market share over the past few years. In 2007-08, the private insurers had a market share of 39.51 per cent which was higher than 34.72 per cent in 2006-07. As a consequence, there has been a decline in the market share of the public insurers to 60.49 per cent in 2007-08 from 65.28 per cent in the previous year. Despite the decline in the market share of the public sector insurance companies, the volume of premium underwritten by them has increased over the previous year reflecting the expansion of general insurance market (Statement 29). This