Page 7 - Insurance Times August 2020

“More than 15 lakh lives have already premium income (GDPI). having a health insurance policy during
been covered under these two prod- "Motor renewals suffered to some ex- the times of COVID-19 has done really
ucts within a month. That shows what tent during the lockdown phase. How- well for the standalone health insur-
is the demand and it is important that ance sector. Standalone health insur-
ever, with digital and telesales plat-
we cater to this demand,” he said. forms the company could garner good ers, in August, saw their premiums
The regulator was compelled to come renewal numbers which were better growing by 36.5 percent which com-
pares to an average growth of 23 per-
out with the standardised Covid-19 poli- than the industry averages," Datta
cent seen in the first four months of
cies after seeing no such initiative from said.
the industry, Khuntia said, adding that IRDAI in June asked all general insur- FY21.
some insurers felt these products were ers to withdraw from August long- ICICI Lombard General Insurance was
competing with their own policies. one company which out performed the
term packages offering both third-
industry growth. Premiums for the in-
party liability (TP) and own-damage
Motor insurance set to (OD) motor insurance policies. surer grew by almost 12 percent in
August which compares to a drop of
pick pace: ICICI Lombard Sharing his views on this IRDAI man- 2.8 percent seen in the first four
With slew of new car models being date, Datta said, "Scrapping of long- months of FY21. The insurer also
launched and the festival season round term package products (for private gained market share by 27 bps in the
the corner, the automobile sector is cars and two-wheelers) were basically period between April to August 2020.
expected to pick up pace in the com- done to reduce the insurance premium New India Assurance remained an un-
ing months and with that the motor ticket size for the customer." der-performer in August. The total
insurance numbers would also go up. With the scrapping of a package policy, premium collection by the insurer in

Sanjay Datta, Chief-Underwriting, an awareness drive is also necessary to August dropped by almost 5 percent on
Claims and Reinsurance, told, "Sale of keep the customers informed about a year-on-year basis. This compares to
New vehicles has picked up since late the OD part of the cover which would an average premium growth of 7.1
June'20 and the July'20 numbers were end from the second year of the policy percent which it saw in first four
encouraging. During the national and the customer has to be mindful to months of FY21. On the positive, New
lockdown, the motor claim intimations purchase the yearly OD cover sepa- India Assurance also gained market
were significantly down. Currently, the rately, he added. share by slightly over 100 bps in the
intimation numbers are almost close to period between April to August 2020.
the pre-lockdown levels." General insurance pre-
It was a disappointing month for Bajaj
According to data released by the mium grows 5.5% in Au- Allianz General Insurance as the in-
General Insurance Council, health in- gust surer saw its premiums in August drop-
surance overtook the motor insurance ping by slightly over 9 percent which
business for the first time to emerge The general insurance sector has man- compares to an average growth of
as the largest portfolio in the general aged to show a positive premium about 13 percent in the first four
insurance industry in the first two growth in August, but the numbers are months of FY21. Bajaj Allianz General
months of this fiscal. unlikely to bring any cheer to the in- Insurance gained a total market share
dustry.
Share of motor insurance shrank to of 64 bps between April to August
26% during April-May as against 37% For August, the general insurance sec- 2020.
in the year-ago period. The lockdown- tor collected a total premium of Rs Out of the three PSU general insur-
induced slide in car sales during this 13,140 crore, a growth of just 5.5 per- ance companies, United India was the
period has impacted fresh premium cent when compared to same month only company which showed a pre-
inflows in the motor segment. last year. The growth in the general mium growth of 28 percent in August.
insurance sector between April to Au-
As for ICICI Lombard, the contribution gust 2020 also hasn't moved anywhere Premiums for both National Insurance
of the motor line of business was Company and Oriental Insurance
as it remains almost flat.
44.34% and 50.99%, respectively for dropped by 5 percent and 15 percent
FY19 and FY20 in terms of gross direct On the contrary, the awareness around respectively in August.
The Insurance Times, August 2020 7