General Insurance Growth Slows to 4.5% in August Amid Slower Auto Sales

India's general insurance industry climbed 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 ₹22,880 crore, compared to ₹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 insurer saw premiums soar by 39% to ₹596 crore.

ICICI Lombard, the largest private sector general insurer, posted a 10.10% increase in premiums, reaching ₹2,137 crore in August, up from ₹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 ₹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 its 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 an 8% increase in premium, while Bajaj Allianz, despite a 3.48% premium increase, saw its share shrink from 8.07% to 7.02%.