The three PSU insurers New India Assurance, United India and Oriental Insurance managed a meagre two-four per cent growth in business and eroded their market shares, while private players grew by 70 per cent to grab over 14 per cent of the general insurance market during 2003-04.
ICICI Lombard posted 135 per cent growth in business at Rs 507 crore to topple Bajaj Allianz and emerge as the leading private player in 2003-04, according to data compiled by IRDA.
Stiff competition among PSUs and private players pushed up general insurance business by 13 per cent with premium income rising to Rs 16,118 crore last fiscal.
The five PSUs contributed 85.79 per cent or Rs 13,828 crore of the business last fiscal compared to Rs 12,910 crore or 90.54 per cent of the market pie in 2002-03.
New India continues to dominate the industry although its market share came down to 24.99 per cent last fiscal from 27.50 in 2002-03.
The company grew by only 2.7 per cent in business at Rs 4,028 crore last fiscal compared to Rs 3,921 crore in 2002-03.
National Insurance outsmarted United India to become the second biggest insurer with a market share of 21.2 per cent last fiscal compared to 20.08 per cent in 2002-03.
{{/usCountry}}National Insurance outsmarted United India to become the second biggest insurer with a market share of 21.2 per cent last fiscal compared to 20.08 per cent in 2002-03.
{{/usCountry}}The Kolkata-based insurer was the only exception among PSUs and posted a modest 19.33 per cent growth in premium at Rs 3,417 crore in 2003-04, compared to Rs 2,864 crore in previous fiscal.
United India could manage a growth of 3.37 per cent by mopping up Rs 3,068 crore in premium. Its market share slipped to 19 per cent in 2003-04, from 20.81 in 2002-03.