The month of August saw the Indian non-life insurance sector logging a muted 12 per cent premium growth, Kotak Securities said in a report.
According to the report, the sector's growth was the lowest in the last five months.
"While motor (vehicle insurance) was muted at 12 per cent, retail health was higher at 19 per cent yoy (year-on-year). With a single-digit base ahead, we expect the motor business to pick up (20 per cent year to date- YTD). Retail health, up 14 per cent YTD, is also catching up," the report notes.
Among the listed players, Star Health reported 25 per cent growth in retail health (22 per cent YTD), but ICICI Lombard was up just two per cent in the competitive motor segment, losing share to Digit, HDFC Ergo, and Tata AIA.
Motor insurance premiums were up 12 per cent in the month of August with similar growth in motor own damage and motor third party sections, after delivering 16-42 per cent growth in the first three months of FY2023.
"With a low base (low-single digits in the next seven months), we expect yoy growth rate to pick up from hereon," Kotak Securities said.
According to the report, retail health insurance industry reported 19 per cent premium growth for the month, translating to 14 per cent YTD.
While the momentum was weak in the initial months, it is gradually picking up even as a double-digit base hereon raises the bar.
The standalone health insurers continued to gain share by 400 bps yoy to 53.4 per cent, with Star Health at 33.6 per cent from 32.1 per cent in August 2021. The growth for private general insurers were flat, while government companies lost share.