Govt owned general Insurance companies are losing market share and the Pvt players are gaining speed in terms of market share in general life insurance business.This happening due to free pricing policy in this sector where the private players are more aggressive then State owned players.

The slower growth among state-owned companies has resulted in ICICI Lombard displacing public sector Oriental Insurance to become the fourth-largest insurer in India.

In the first quarter, non-life insurance has grown 13.4%, taking the total premium to Rs 8,437 crore, up from Rs 7,438 crore in the corresponding quarter last year. The growth has largely come from private companies which have grown 22.4% against public sector companies which have grown much slower at 7.7%. Unlike life insurance where government presence is through the monolithic Life Insurance Corporation (LIC), the government owns four companies in non-life — New India, Oriental Insurance, National Insurance and United India. The state-owned companies now account for 58% of non-life premium compared with 61% a year ago.

Unlike life insurance, which has seen a complete change in the ranking of insurers in terms of topline, the non-life insurance has been steady. Besides, United India and ICICI Lombard, MS Cholamandalam and Royal Sundaram are the only two companies to trade places in the ranking list. The highest growth rates have been recorded by Cholamandalam (35%), followed by Iffco-Tokio (33%), Tata AIG (28.12%) and Bajaj Allianz (27.85%).

Reliance General Insurance, which was the fastest growing company last year, has grown slower than the industry with a 5.2% rise in premium income