The reversal, which began last year, is being driven by improvements in digital servicing and claims turnaround times, as well as pricing reset in the industry.
Four public sector insurers including New India Assurance and National Insurance saw their market share inch up by more than four percentage points to 35%.
Public sector firms like New India Assurance and Oriental Insurance grew premiums by up to 15% in the June quarter, outpacing the industry average of 8-9%. The gains are coming after many years of steady market share loss to private competitors.
Private sector insurers were gaining market share with quick service of claim settlement.
“In FY25 Q3 and FY25 Q4, we have the PSUs, they have buckled the trend and they have gained significant market share also in motor segment,” said Sanjeev Mantri MD and CEO ICICI Lombard‘s who during an investor call in April. Private players, long aggressive in fire and commercial lines, are pulling back amid rising loss ratios and tighter reinsurance terms.”Fire used to run at a low loss ratio of around 50% which is now closer to 70% and that is the reason private sector insurers are not aggressive,” said a senior executive of a general insurance company. “GIC Re has cracked down due to deterioration in this portfolio in the last two years, tightening capacity and so the private sector is going slow.”
Public sector insurers, once seen as slow, are regaining traction in group health and motor segments through pricing aggression. As a result of intense competition in the motor segment driven by PSU insurers, COR for motor (industry) increased to around 124% from 119% for FY24.
ICICI Lombard, largest listed private non-life insurer, said in its earnings call that public sector players are winning business with aggressive pricing.
