One and a half decades after the Indian insurance industry opened up to private players, ICICI Lombard became the first private non-life insurer to overtake a Public Sector Unit (PSU) counterpart in terms of gross written premium.
In an industry dominated by PSU companies, ICICI Lombard overtook Oriental Insurance and was ranked fourth after reporting a gross premium of ₹ 2,880 crore, a 41% increase from the previous year, and a market share of 11%, for the quarter ended June 2016.
ICICI Lombard also ranks third in the motor insurance segment, which forms a major chunk of the general insurance market, with premium income of ₹ 1,073 crore. Overall, the first quarter of the financial year was lucrative for non-life insurers, with a collective growth of nearly 17%. Private insurers grew at an accelerated rate of 21% compared to public sector companies (approximately 14%).
Mr. Bhargav Dasgupta, the MD and CEO of ICICI Lombard, believes that the growth is sustainable. He attributed the growth to motor insurance and its innovative long-term policies by saying, “Over 92% of our motor insurance claims are settled in one month as against 64% average for the industry.” He also added that ICICI Lombard’s underwriting margins were better than industry average of 118% and it had a combined ratio of 106% despite the large claims due to Chennai floods and other crop insurance.