HYDERABAD: After subdued growth, life and non-life premium income of insurance companies witnessed double-digit growth in FY19, according to latest data from the Insurance Regulatory and Development Authority of India (IRDAI).
While life insurer’s premium income grew 11 per cent in FY19 over the previous year, non-life insurers registered a growth of 13 per cent. However, private players fared better than state-run players in both life and non-life sectors. For instance, while in life insurance, LIC’s annual growth slowed down to 6 per cent in FY19 as against 8 per cent in FY18, in non-life, state-run players’ premium income grew at a pale 5 per cent, a notch lower than 6 per cent recorded in FY18.
The slower pace of growth for public insurers had been a drag on their market share in the just concluded financial year. LIC’s dominant share in life insurance sector was down from 69.4 per cent in FY18 to 66.24 per cent in FY19; within non-life, state-run players’ share fell a full 100 bps from 6 to 5 per cent.
As on FY19, there are 23 private life insurers and one state-run player (LIC); non-life industry comprises 25 private players, seven standalone insurers and two public-sector entities.
In terms of actual figures, non-life insurers’ premium income stood at Rs 1.70 lakh crore in FY19, against Rs 1.51 lakh crore a year ago. While private players’ gross premium stood at Rs 1.50 lakh crore in FY19, up by nearly 13 per cent from Rs 1.33 lakh crore a year ago, standalone private insurers income premium stood at Rs 11,368 crore as against Rs 8,314 crore a year ago.
On the other hand, state-run players saw their premium income decline by nearly 8 per cent at Rs 8,426 crore during the fiscal ended March 2019 as against Rs 9,134 crore the previous year. As for life insurance, total premium income grew to Rs 2 lakh crore from Rs 1.9 lakh crore. Of this, private players’ income premia stood at Rs 72,481 crore, while LIC accounted for the rest at Rs 1.4 lakh crore.