Against this, the private sector An analysis of monthly data by CARE Ratings shows that their market has improved by 67.4 percent in the reporting month from 63.4 percent in the same period last year.
The decline is so sharp for the public sector players as is evident from the market share numbers for FY2018 when they accounted for 46.5 per cent of the total motor segment premium, while the private players then had only 53.5 per cent.
Come FY19, the respective share declined to 40.7 per cent for the public sector, while to 59.3 per cent for the private players. According to the CARE report, the share of public sector players declined to 36.8 per cent in FY10 and fell to 34.2 per cent in FY11, while that of private players increased to 63.2 per cent in FY10 and further It grew to 65.8 percent in FY21.
Similarly, in FY18, the public sector motor OD (own damage) market had a market share of 37.5 per cent, and that of private players was 62.5 per cent, which declined to 32.5 per cent and 67.5 per cent respectively. 28.3 per cent and 71.7 per cent respectively in FY19 and FY15 onwards.
The respective shares stood at 25.5 per cent and 74.5 per cent in FY21. In August 2020, the pie was 27.8 percent and 72.2 percent and which rose to 24.3 percent and 75.7 percent respectively.
Only the public sector has some leeway in the motor TP (third-party) segment as they had a market share of 52.7 per cent in FY18 against 46.3 per cent of private players, but lost that too within a year.
It declined to 46.5 per cent in FY19 and 42.2 per cent in FY20, while the pie for private players increased to 53.5 per cent in FY19 and 57.8 per cent in FY20.
In the last financial year, the share of public companies was 39.7 per cent and that of private companies was 60.3 per cent. In August 2021, it is as low as 38.3 per cent for the public sector, down from 42.3 per cent in August 2020, as against 61.7 per cent and 57.7 per cent for private players.
This downtrend is particularly significant for the public sector player as the Motor TP segment has emerged as the major segment driving the overall motor insurance growth.
As per industry data, there were over 23.12 crore vehicles on the road in the country as of March 2019, of which 57 per cent were uninsured vehicles. Two-wheelers were the largest segment of uninsured vehicles, of which over 60 per cent were uninsured, while uninsured cars were only 10 per cent, showing huge growth potential.
In FY21, motor premiums declined after the pandemic but retained the top spot, which was handed over to the health segment in FY12. This is also in line with the international market, where the health is much larger than the motor segment. The Motor TP segment continues to grow faster than the Motor OD segment.
between states, Maharashtra followed by the top Tamil Nadu, Karnataka, and in Motor Business for Uttar Pradesh Insurance Companies.
Despite the chip crunch in the report, any increase in TP rates and auto sales driven motor insurance premiums for the full year are expected to grow at a rate of 6-8 per cent.