Motor OD premium, lock down effect

Due to Slow down in Automobile industry insurers are also  facing multiple challenges. Entire automobile sector was already facing a dip in 2019-2020 & now with spread of Kovid-19 & subsequent lock down, the people have postponed the purchase of new vehicle. Automobile sales constitute a major portion of the premiums, and hence the lock-down and virtual stoppage of business is impacting he non-life insurers in big way.

Motor OD premium data up-to the month of May-20 for non life insurers is available now. Almost all the public as well Pvt. insurers are in the red. Public sector total OD premium is 770 Cr. against the Pvt. sector’s 1829 Cr. Public sector market share in this segment is 29% as compared to the pvt sector share of 71% as on date..

Market share wise, public was having about 30.62% of motor OD market share up-to may-19 which has come down to 29% this year thus declining by another 1.5%.

Volume wise the pvt. player like ICICI, Tata-AIG & Bajaj are at No. 1,2 & 4 whereas the public sector players have slipped to No 2,5,7 & 10.

Volume wise standing of Non-life insurers in motor OD segment.

Besides motor, most of the other departments are also showing downward trend.However some good surge in fire & health verticals have given some breathing space to non-life insurer.

Compiled by: JD Batta-Surveyor & Loss Assessor