The primary reason for the increase in growth was due to increase in health insurance segment by 42 per cent Y-o-Y (highest growth rate in 13 months) as well as 59 per cent Y-o-Y growth in fire business with higher reinsurance rates.
“Retail heath maintained strong momentum at 15 per cent Y-o-Y growth in February 2020 while group health business was up 19 per cent Y-o-Y. PSUs saw a sharp 67 per cent growth in business – United India (up 147 per cent Y-o-Y) and Oriental (up 86 per cent Y-o-Y being the growth leaders gaining market share from private players and specialized standalone players,” notes the Kotak Report. On the flipside, the Motor segment premium reported just a 3 per cent growth Y-o-Y in February 2020 significantly down by 15-20 per cent growth levels witnessed in September-October 2019 post introduction of new traffic penalty rules.
Motor Third-Party (TP) saw a growth of 7 per cent Y-o-Y in February 2020, lower than Year-To-Date (YTD) growth rate of 14 per cent. “Own Damage (OD) business contracted by 3 per cent Y-o-Y during the month likely due weak lower original equipment manufacturer (OEM)sales. Private players continued to gain market share on YTD basis, reporting 17 per cent Y-o-Y growth, while public sector undertakings (PSU) business YTD contracted by 3 per cent y-o-y,” says Kotak Report.
Also, the premium in crop business declined sharply by 52 per cent Y-o-Y during February 2020, however up by 21 per cent YTD for FY2020. That said, both private as well as PSU general insurers posted approximately 11-12 per cent Y-o-Y growth in their overall premiums in February 2020. Further on an ex-crop basis, private general insurers rose 19 per cent Y-o-Y growth, while PSU players increased by 16 per cent.