General insurance growth slows to 4.5% in August amid slower auto sales

General insurance industry grew by a modest 4.5% in August 2024, hampered by slower new vehicle sales and the absence of a motor third party tariff hike. Major players such as New India Insurance, HDFC Ergo General Insurance, and National Insurance reported growth deceleration. Total industry premiums stood at Rs 22,880 crore, compared to Rs 21,883 crore in August 2023.

August saw a dip in auto sales, with passenger vehicle sales falling 4.5% year-on-year during the month, according to data released by the Federation of Automobile Dealers Association.

Standalone health insurance companies, on the other hand, reported a robust 24.5% growth, driven by Niva Bupa Health Insurance, which is gearing up for its IPO. The health insurer saw premiums soar by 39% to Rs 596 crore from Rs 429 crore.


ICICI Lombard, listed private sector general insurer, posted a 10.10% increase in premium, reaching Rs 2,137 crore in August, up from Rs 1,941 crore in the same period last year, increasing its market share from 9.37% to 9.97%.

Recently listed Go Digit General Insurance reported a 2.66% rise in premium to Rs 649 crore, with its market share inching up from 2.86% to 2.91%.

In contrast, New India Insurance saw its premium fall 12.5% and market share dip from 13.95% to 12.86%, while National Insurance’s premium fell 14.36% and share dropped from 5.28% to 4.98%. HDFC Ergo also saw a decline in premium of 22.7% and therefore market share, falling from 6.03% to 5.66%.

SBI General Insurance expanded its market share from 3.77% to 4.11% with 8% increase in premium, while Bajaj Allianz, despite a 3.48% premium increase, saw its share shrink from 8.07% to 7.02%.