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In Sep’21, the industry generated GWP of INR 222bn, down 3% YoY. The weak performance was driven by crop insurance (AIC: down 47% YoY) while health insurance continued to provide support (SAHI: up 32% YoY). Private insurers’ premium growth was subdued at 6% YoY while premium for public insurers dropped 6% YoY.

Among private insurers, ICICI Lombard’s growth was strong at 35% YoY. Digital-first general insurers – Go Digit (1.7x YoY) and Acko (2.3x YoY) maintained healthy momentum. Compared to Sep’19, industry GWP was down 8% in Sep’21, where private insurers declined 2% while standalone health insurers (SAHI) registered a growth of 56%.

GWP for ICICI Lombard was up 45%. In 2QFY22, premium growth for the industry was 14% YoY (aided by soft base), as most of the Covid-related restrictions were eased. Standalone health insurers (28% YoY) led the growth followed by private insurers (18% YoY) while public insurers (6% YoY) remained laggards. YTD, the industry garnered GWP of INR 1.1trn (up 14% YoY – helped by favorable base), led by standalone health insurers (up 39% YoY).

Market share wise, private insurers consolidated leadership at 49% GWP market share (up 70bps YoY), with market share of ICICI Lombard and BAGIC expanding 110bps/ 20bps YoY to 8%/ 7%, respectively. We continue to monitor recovery from impact of second wave of COVID claims - motor, health (COVID + non-COVID) insurance.

HIGHLIGHTS

* Weak month – Sep’21: The non-life insurance industry generated premium of INR 222bn, down 3% YoY, despite soft base. The weak performance was driven by crop insurance (AIC: down 47% YoY) while standalone health insurers (SAHI) continued to provide support (up 32% YoY). Private insurers premium growth was subdued (up 6% YoY) while premium for public insurers dropped 6% YoY. Among private insurers, ICICI Lombard’s GWP growth was strong at 35% YoY while BAGIC had a growth of 8% YoY and HDFC ERGO witnessed de-growth of 6% YoY.

* Strong performance for digital-first general insurers: For Sep’21, digital-first general insurers – Go Digit (1.7x YoY) and Acko (2.3x YoY) maintained healthy momentum. The growth was aided by product diversification – as of Aug’21 (5MFYTD), share of property lines for GoDigit increased to 18% of premiums from 4% in FY20 while the share of health for Acko increased to 43% vs 26% in FY20. Go Digit managed to increase market share by 68bps YoY to 1.6%, as of Sep’21 in a highly competitive industry. Acko’s market share also increased by 23bps YoY to 0.4%, as of Sep’21.

* Premium grew 8% from Sep’19 levels: Compared to Sep’19, industry GWP was down 8% in Sep’21, driven by decline in private/ public/ specialised PSU insurers by 2%/ 5%/ 56%, respectively, however standalone health insurers registered a growth of 56%. GWP for ICICI Lombard was up 45% and HDFC ERGO was down 5%.

* In Aug’21, GWP growth for health line remained on robust trajectory: In health, public insurers (up 31% YoY) led the growth, followed by standalone health insurers (up 26% YoY) while private insurers (up 14% YoY) relatively has modest growth. Among large private insurers, SBI General recorded sharp surge (3.2x YoY), ICICI Lombard grew 11% YoY while BAGIC and HDFC ERGO each increased 4% YoY.

Among other major product lines, motor grew with decent pace of 9% YoY, (aided by favourable base -3% YoY in Aug’20). Premiums collected for motor OD (up 11% YoY) and motor TP (up 8% YoY) remained soft vs. industry growth of 24% YoY in Aug’21. Crop segment has a strong GWP growth (up 40% YoY), aided by soft base and driven by AIC (up 54% YoY).

* Robust growth maintained in 2QFY21 vs. previous quarter: In 2QFY21, premium growth for the industry was 14% YoY (at the same levels of 1QFY22), as most of the Covid-related restrictions were lifted-off. The growth was also aided by favourable base. Standalone health insurers (28% YoY) led the growth followed by private insurers (18% YoY) while public insurers (6% YoY) remained laggards.

* YTD growth of 14% YoY with private players consolidating their market leadership: YTD, the industry garnered GWP of INR 1.1trn (up 14% YoY – also helped by favorable base), led by standalone health insurers (up 39% YoY). Market share wise, private insurers consolidated leadership with a 49% GWP market share (up 70bps YoY), with market share of ICICI Lombard and BAGIC expanding 110bps/ 20bps YoY to 8%/ 7%, respectively.

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