Public sector general insurers have been losing ground to private insurers, especially in the motor segment, with their share falling to 32.6 per cent in August from 36.6 per cent a year ago. On the other hand, the private sector has improved its share to 67.4 per cent in the reporting month from 63.4 per cent in the year-ago period, shows an analysis of monthly data by Care Ratings.
In FY18, public sector players held a market share of 46.5 per cent of the total motor segment premia, while private players had 53.5 per cent.
In FY19, the respective share declined to 40.7 per cent for the public sector while it jumped to 59.3 per cent for the private players. The share of public sector players declined to 36.8 per cent in FY20 and further dropped to 34.2 per cent in FY21 while that of private players rose to 63.2 per cent in FY20 and further
accelerated to 65.8 per cent in FY21, according to Care report.
Similarly, in FY18, the public sector had a market share of 37.5 per cent of the motor OD (own damage) market, and the private players had it 62.5 per cent, which declined and increased respectively to 32.5 per cent and 67.5 per cent in FY19 and further to 28.3 per cent and 71.7 per cent, respectively in FY20.
In FY21 the respective shares were 25.5 per cent and 74.5 per cent. In August 2020 the pie was 27.8 per cent and 72.2 per cent and which further declined to 24.3 per cent and 75.7 per cent respectively.
Its only in motor TP (third-party) segment that the public sector have some leeway as they had a market share of 52.7 per cent as against private players’ 46.3 per cent in FY18, but within a year they lost that too.
In FY19 it declined to 46.5 per cent and to 42.2 per cent in FY20 while for private players the pie increased to 53.5 per cent in FY19 and to 57.8 per cent in FY20.