Insurance Data & Trends

Data Team

Mr. Sandeep Pandey – Life

Ms. Ruchika Yadav and Mr. Mahesh Udawant – Non-Life
Bimaquest-Vol. 18 Issue 1, Jan 2018 Insurance Data & Trends

Insurance Data & Trends

Life Insurance
Figure 1

New Business Month wise Policy Growth

35.00%
29.67%
30.00%
25.04%
25.00%
18.85%
20.00%

15.00% 12.70%

10.00% 8.18%

5.00%
0.09%
0.00%
April May June July August September October November
-5.00%

-10.00% -4.04% -5.03%

M2M NB Policy Growth

In the current year, 10.5 million policies as against 10.37 million policies during the same period
last year. In the month of November 2017, 2.03 million policies were completed.

Figure 2

First Year Premium

60.00%
47.44%
50.00%

40.00%

30.00% 22.62% 24.60% 24.91%

20.00% 12.93%
11.22%
10.00% 5.93%

0.00%
April May June July August September October November
-10.00%

-20.00% -12.33%

First Year Premium

In the current year, Rs 1.23 trillion of First Year premium is recorded by the Life Insurance

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Insurance Data & Trends Bimaquest-Vol. 18 Issue 1, Jan 2018

Industry as against Rs 1.03 trillion up to November, 2016. November, 2017 has registered
Rs.169.94 billion as First Year Premium.

Figure 3

Single V/s Non Single First Yr Premium

25.00% 23.24%
21.78%

20.00%

15.00%

9.10%
10.00%
6.81%

5.00%

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. 744.52 Billion and Non single
FYP was 158.62 Billion. Private Sector Life Insurance Industry share was Rs 113.42 Billion and
in Non single FYP Rs.212.8 billion.

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Figure 4

Individual V/s Group First Yr Premium

40.00%
35.00% 33.52%

30.00%
25.00% 23.04%

20.00%
15.17%
15.00%
10.00%
5.00%
0.00%
Private Life Insurance Public Life Insurance Private Life Insurance Public Life Insurance
-5.00%
Individual Individual Group Group
-10.00% -5.73%

Individual V/s Group First Year Premium

Public Sector
l Individual FYP Rs. 335.1 billion
l Group FYP Rs. 568.04 billion.
Private Sector
l Individual FYP Rs. 215.98 Billion
l Group FYP Rs. 110.24 Billion.

Figure 5

Quarter wise Ratio of Claims paid to Net Premium

150.00

100.00 57.70 59.02

52.32
45.47

50.00
75.18 74.79 70.75 59.36
0.00
Q1 2016 Q1 2017 Q2 2016 Q2 2017

Private Life Insurance Public Life Insurance

Net Claims to Net Premium

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Figure 6

Quarterwise Ratio of Operating Expenses to Net Premium

30.00

25.00
9.44
8.71 12.76
20.00 7.76
15.00

10.00 18.87 17.24 15.39

14.78
5.00

0.00
Q1 2016 Q1 2017 Q2 2016 Q2 2017

Private Life Insurance Public Life Insurance

Operating Expenses to Net Premium

Figure 7

Quarter wise Ratio of Commission to Net Premium

12.00

10.00

8.00 4.98
4.70 4.91 5.15
6.00

4.00
5.75
2.00 4.76 4.51 4.73

0.00
Q1 2016 Q1 2017 Q2 2016 Q2 2017
Private Life Insurance Public Life Insurance

Commission to Net Premium

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Bimaquest-Vol. 18 Issue 1, Jan 2018 Insurance Data & Trends

General Insurance
Gross Direct Premium Income (GDPI) underwritten by non-life insurance players has grown at
the rate of 18.63% to ` 86097.25 crores till November 2017 as compared to the same period during
the last financial year. Out of the total non-life industry accretion of ` 13,521.20 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 2017.

Figure 1

Sector Wise Market Share upto November 2017

Private Sector
44%

Public Sector
45% Standalone
With the number of private insurers
Health rising, in last one year market share of
4%
Specialised private sector has increased from
Instn. 41.74% in November 2016 to almost
7%
44% in November 2017.

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Insurance Data & Trends Bimaquest-Vol. 18 Issue 1, Jan 2018

Figure 2

Segment Wise Market Share upto November 2017

Marine
2%
Fire
7%

Miscellaneous
26%

Engineering Motor Motor remains the market leader with

2% 39% the growth of almost 19% in GDPI,
followed by Health with nearly 18%
Health
24% 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 ` 14465 crore at a notable rate of almost 24% upto Q2 in
2017-18. Non-life insurance industry has grown at a notable rate of 24% upto Q2 of 2017-18, 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 Q2 2017-18, in
comparison with the same period of the previous year are shown in Figure-3 and Figure-4
respectively.

Financial Highlights upto Q2 of 2017-18 & 2016-17

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).

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Figure 3

4000
Financial Highlights
3000
2000
1000
0
Rs. In Crores

-1000 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17

-2000 Public Sector Private Sector Standalone Health Specialised
-3000 Institutions

-4000
-5000
-6000
Underwriting Results Operating Profit/Loss Profit After Tax
-7000
#Does not include data of Aditya Birla Health Insurance Co.

Figure 4

140.00 Analytical Ratios

120.00

100.00

80.00

60.00

40.00

20.00

0.00
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
-20.00
Public Sector Private Sector Standalone Health Specialised Institutions
-40.00
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 2016-17 Q2.

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Insurance Data & Trends Bimaquest-Vol. 18 Issue 1, Jan 2018

Channel-wise percentage of Market Share is shown below:

Channel-wise % share of Premium of Channel-wise % share of Premium of

General Insurance Industry General Insurance Industry
upto quarter ended 30.09.2017 upto quarter ended 30.09.2016

30% 32% 31% 33%

6% 7%

25% 7% 24% 5%

Individual agents Corporate Agents-Banks Individual agents Corporate Agents-Banks

Corporate Agents -Others Brokers Corporate Agents -Others Brokers
Direct Business Direct Business

#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)

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Bimaquest-Vol. 18 Issue 1, Jan 2018 Insurance Data & Trends

Solvency Ratio of Life Insurance Companies

Sector Company Sep-17 Jun-17 Mar-17 Dec-16 Sep-16 Jun-16

AEGON Life 1.69 1.74 2.08 2.24 2.78 3.14
Aviva Life 3.09 3.36 3.46 3.67 3.76 3.86
Bajaj Allianz Life 6.07 5.99 5.82 7.71 7.84 8.08
Bharti AXA Life 2.03 1.63 1.82 1.58 1.82 2.27
Birla Sun Life 2.02 2.04 2.00 2.03 2.05 2.12
Canara HSBC OBC Life 3.85 3.73 4.01 4.26 4.28 4.22
DHFL Pramerica Life 6.76 7.13 7.68 8.15 8.94 10.17
Edelweiss Tokio Life 2.24 2.28 2.20 2.22 2.15 2.51
Exide Life 2.11 2.27 2.52 2.19 2.4 2.52
Future Generali India Life 2.38 2.03 1.61 1.71 1.81 1.71
Private HDFC Standard Life 2.01 1.98 1.92 1.95 2.09 2.04
Insurers ICICI Prudential Life 2.76 2.88 2.81 2.94 3.06 3.2
IDBI Federal Life 3.69 3.55 3.52 3.66 3.83 4.15
IndiaFirst Life 1.73 1.83 1.84 1.86 1.91 2.08
Kotak Mahindra Life 3.08 3.04 3.00 3.06 3.04 3.13
Max Life 2.95 2.95 3.09 3.3 3.43 3.47
PNB MetLife India 2.09 2.04 2.03 2.14 2.11 2.21
Reliance Nippon Life 2.76 2.72 2.72 3.13 3.14 3.11
Sahara India Life NA NA NA 8.12 8.19 8.1
SBI Life 2.09 2.11 2.04 2.09 2.14 2.18
Shriram Life 2.30 2.20 2.03 2.30 2.40 2.34
Star Union Dai-ichi Life 2.60 2.60 2.78 2.05 1.93 1.92
Tata AIA Life 2.98 3.05 3.15 3.22 3.29 3.4
Public LIC of India 1.51 1.53 1.58 1.51 1.52 1.73
Insurer

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Insurance Data & Trends 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 2.88 2.77 2.61 2.58 2.53 2.54
Bharti Axa 1.98 1.68 1.65 1.77 1.80 1.73
Cholamandalam 1.55 1.68 1.64 1.61 1.64 1.60
Future Generali 1.81 1.85 1.72 1.83 1.51 1.45
HDFC Ergo 1.87 1.65 1.71 1.66 1.52 1.87
HDFC General NA 2.04 1.67 1.56 2.03 1.36
ICICI Lombard 2.18 2.13 2.10 1.78 1.64 1.78
IFFCO Tokio 1.79 1.64 1.60 1.62 1.64 1.54
Private Kotak Mahindra 2.28 2.41 1.80 2.02 1.58 2.31
Insurers Liberty Videocon 1.85 2.22 2.87 3.54 4.09 1.51
Magma HDI 2.06 2.06 2.07 2.02 1.99 1.84
Raheja QBE 4.42 4.43 4.45 4.47 4.44 4.41
Reliance General 1.73 1.70 1.68 1.58 1.81 1.65
Royal Sundaram 2.25 1.69 1.69 1.63 1.66 1.56
SBI General 2.67 2.30 2.19 1.85 2.00 1.65
Shriram General 2.09 1.86 1.94 2.12 2.07 2.02
Tata AIG 1.95 1.72 1.80 1.54 1.64 1.69
Universal Sompo 1.68 1.64 1.57 1.56 1.56 1.64
National 1.62 1.69 1.90 1.31 1.26 1.26
Public New India 2.24 2.24 2.19 2.17 2.04 2.11
Insurers Oriental 1.52 1.18 1.11 1.22 1.14 1.51
United 1.08 1.10 1.15 1.55 1.56 1.77
Stand- Aditya Birla 3.46 2.22 2.88 3.95 NA NA
alone Apollo Munich Health 1.57 1.54 1.90 1.69 1.62 1.55
Health Cigna TTK 3.83 2.13 2.65 1.68 1.68 1.68
Max Bupa Health 1.96 1.99 2.01 2.25 2.44 2.05
Religare Health 1.54 1.58 1.91 1.82 2.21 2.44
Star Health 1.52 1.53 1.61 1.52 1.59 5.27
Specialised AICL 2.59 2.13 1.84 1.82 1.56 3.14
Institutions ECGC 7.62 8.60 8.69 7.62 8.42 9.38
Reinsurer GIC 1.72 1.76 2.40 2.21 2.92 3.56

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Bimaquest-Vol. 18 Issue 1, Jan 2018 Insurance Data & Trends

Frequency Analysis of Solvency Ratio of Life Insurance Companies

Range Sept-17 Jun-17 Mar-17 Dec-16 Sept-16
1.0 – 2.0 3 5 6 5 5
2.1 – 3.0 14 11 10 9 8
3.1 – 6.0 4 6 6 7 8
Above 6.1 2 1 1 3 3
NotAvailable * 1 1 1 0 0
Total 24 24 24 24 24
*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-16
1.0 – 2.0 17 18 19 20 20
2.1 – 3.0 9 11 10 7 7
3.1 – 4.0 2 0 0 2 3
Above 4.1 2 2 2 2 1
NotAvailable * 1 0 0 0 0
Total 31 31 31 31 31
*No solvency ratio available for HDFC General Insurance Co. Ltd.

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