Insurance Data & Trends Data Team

Transcription

1 Data Team Mr. Sandeep Pandey Life Ms. Ruchika Yadav and Mr. Mahesh Udawant Non-Life

2 Bimaquest-Vol. 18 Issue 1, Jan 2018 Life Insurance Figure % 30.00% 25.00% 20.00% 25.04% New Business Month wise Policy Growth 18.85% 29.67% 15.00% 10.00% 8.18% 12.70% 5.00% 0.00% -5.00% % 0.09% April May June July August September October November -4.04% -5.03% M2M NB Policy Growth In the current year, 10.5 million policies as against million policies during the same period last year. In the month of November 2017, 2.03 million policies were completed. Figure % 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% % % First Year Premium 47.44% 22.62% 24.60% 24.91% 11.22% 12.93% 5.93% April May June July August September October November % First Year Premium In the current year, Rs 1.23 trillion of First Year premium is recorded by the Life Insurance 102

3 Bimaquest-Vol. 18 Issue 1, Jan 2018 Industry as against Rs 1.03 trillion up to November, November, 2017 has registered Rs billion as First Year Premium. Figure % Single V/s Non Single First Yr Premium 23.24% 21.78% 20.00% 15.00% 10.00% 5.00% 9.10% 6.81% 0.00% Private Single Premium Public Single Premium Private Non Single Public Non Single Premium Single V/s Non Single First Year Premium Single First Year Premium of Public Sector upto November was Rs Billion and Non single FYP was Billion. Private Sector Life Insurance Industry share was Rs Billion and in Non single FYP Rs billion. 103

4 Bimaquest-Vol. 18 Issue 1, Jan 2018 Figure % 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% % 33.52% Private Life Insurance Individual Individual V/s Group First Yr Premium 15.17% Public Life Insurance Individual Private Life Insurance Group -5.73% Individual V/s Group First Year Premium 23.04% Public Life Insurance Group Public Sector Individual FYP Group FYP Private Sector Individual FYP Group FYP Rs billion Rs billion. Rs Billion Rs Billion. Figure Quarter wise Ratio of Claims paid to Net Premium Q Q Q Q Private Life Insurance Public Life Insurance Net Claims to Net Premium 104

5 Bimaquest-Vol. 18 Issue 1, Jan 2018 Figure Quarterwise Ratio of Operating Expenses to Net Premium Q Q Q Q Private Life Insurance Public Life Insurance Operating Expenses to Net Premium Figure Quarter wise Ratio of Commission to Net Premium Q Q Q Q Private Life Insurance Public Life Insurance Commission to Net Premium 105

6 Bimaquest-Vol. 18 Issue 1, Jan 2018 General Insurance Gross Direct Premium Income (GDPI) underwritten by non-life insurance players has grown at the rate of 18.63% to ` crores till November 2017 as compared to the same period during the last financial year. Out of the total non-life industry accretion of ` 13, crore upto November 2017, almost 60% ( ` 7,890 crore) premium growth has been contributed by the private sector. Standalone Health Insurers have grown at a remarkable rate of 43.38%, followed by the private sector which has grown at an impressive rate of 23.13%. However, in terms of non-life insurance penetration, there is still a long way to go. Figure-1 and Figure-2 show Sector wise and Segment wise market share with respect to GDPI underwritten upto November Figure 1 Sector Wise Market Share upto November 2017 Private Sector 44% Public Sector 45% Standalone Health 4% Specialised Instn. 7% With the number of private insurers rising, in last one year market share of private sector has increased from 41.74% in November 2016 to almost 44% in November

7 Bimaquest-Vol. 18 Issue 1, Jan 2018 Figure 2 Segment Wise Market Share upto November 2017 Fire 7% Marine 2% Miscellaneous 26% Engineering 2% Health 24% Motor 39% Motor remains the market leader with the growth of almost 19% in GDPI, followed by Health with nearly 18% growth. However, Marine has shown a dip of 3.90% in premium growth upto November 2017 as compared to last year. Gross Direct Premium has increased by ` crore at a notable rate of almost 24% upto Q2 in Non-life insurance industry has grown at a notable rate of 24% upto Q2 of , with Private sector and Standalone Health insurers leading the race. Although the underwriting losses for the entire non-life insurance industry have reduced by ` 1326 crore at ` 6254 crore, the industry continues to reel under the pressure of underwriting losses and a turnaround is still not round the corner. Sector wise financial highlights and important analytical ratios for the period upto Q , in comparison with the same period of the previous year are shown in Figure-3 and Figure-4 respectively. Financial Highlights upto Q2 of & This period records an improvement in Industry Operating Profit of ` 3,149 crore upto Q2 of current financial year as compared to Operating Loss of ` 443 crore in the previous year. Industry's profit after tax has also shown growth of ` 3,315 crore (i.e. 212% more than the Q2 of previous year). 107

8 Bimaquest-Vol. 18 Issue 1, Jan 2018 Rs. In Crores Financial Highlights Public Sector Private Sector Standalone Health Specialised Institutions #Does not include data of Aditya Birla Health Insurance Co. Figure 3 Underwriting Results Operating Profit/Loss Profit After Tax Figure Analytical Ratios Public Sector Private Sector Standalone Health Specialised Institutions GDPI Growth Net Commission Ratio Expenses of Management to GDP Ratio ICR Combined Ratio #Does not include data of Aditya Birla Health Insurance Co. Expenses of management to GDP ratio, Incurred Claims Ratio as well as combined ratio of the total non-life insurance industry has also improved as compared to Q2. 108

9 Bimaquest-Vol. 18 Issue 1, Jan 2018 Channel-wise percentage of Market Share is shown below: Channel-wisupto quarter ended % share of Premium of General Insurance Industry Channel-wisupto quarter ended % share of Premium of General Insurance Industry % 32% 31% 33% 6% 7% 25% 7% 24% 5% Individual agents Corporate Agents -Others Direct Business Corporate Agents-Banks Brokers Individual agents Corporate Agents -Others Direct Business Corporate Agents-Banks Brokers #Does not include data of HDFC General Insurance Co. #Does not include data of ECGC Ltd. Convention used for Ratios 1. GDPI Growth = GDPI (CY) minus GDPI (PY) / GDPI (PY) 2. Net Commission Ratio = Net Commission/Net Written Premium 3. Expenses of Management to GDP Ratio = (Operating Expenses + Direct Commission) / GDPI 4. Incurred Claim Ratio = Net Claims Incurred / Net Earned Premium 5. Combined Ratio = Net Incurred Claims / Net Earned Premium + (Expenses of Management + Net Commission) / Net Written Premium 6. Underwriting results = Net Earned Premium minus (Net Incurred Claims + Net Commission + Operating Expenses related to insurance business) 109

10 Bimaquest-Vol. 18 Issue 1, Jan 2018 Solvency Ratio of Life Insurance Companies Sector Company Sep-17 Jun-17 Mar-17 Dec-16 Sep-16 Jun-16 AEGON Life Aviva Life Bajaj Allianz Life Bharti AXA Life Birla Sun Life Canara HSBC OBC Life DHFL Pramerica Life Edelweiss Tokio Life Exide Life Future Generali India Life Private HDFC Standard Life Insurers ICICI Prudential Life IDBI Federal Life IndiaFirst Life Kotak Mahindra Life Max Life PNB MetLife India Reliance Nippon Life Sahara India Life NA NA NA SBI Life Shriram Life Star Union Dai-ichi Life Tata AIA Life Public Insurer LIC of India

11 Bimaquest-Vol. 18 Issue 1, Jan 2018 Solvency Ratio of General Insurance Companies Sector Company Sep-17 Jun-17 Mar-17 Dec-16 Sep-16 Jun-16 Bajaj Allianz Bharti Axa Cholamandalam Future Generali HDFC Ergo HDFC General NA ICICI Lombard IFFCO Tokio Private Kotak Mahindra Insurers Liberty Videocon Magma HDI Raheja QBE Reliance General Royal Sundaram SBI General Shriram General Tata AIG Universal Sompo National Public New India Insurers Oriental United Stand- Aditya Birla NA NA alone Apollo Munich Health Health Cigna TTK Max Bupa Health Religare Health Star Health AICL ECGC Reinsurer GIC Specialised Institutions 111

12 Bimaquest-Vol. 18 Issue 1, Jan 2018 Frequency Analysis of Solvency Ratio of Life Insurance Companies Range Sept-17 Jun-17 Mar-17 Dec-16 Sept Above NotAvailable * Total *No solvency ratio available for Sahara India Life Insurance Co. Ltd. Frequency Analysis of Solvency Ratio of General Insurance Companies Range Sept-17 Jun-17 Mar-17 Dec-16 Sept Above NotAvailable * Total *No solvency ratio available for HDFC General Insurance Co. Ltd. 112