Slump in auto sales hits general insurers

General insurance premium grew 0.11 per cent to Rs 2,223.45 crore in November, as against Rs 2,220.96 crore in November 2007 mainly due to a fall in auto sales which accounts for 50 per cent of the industry's business.

The industry had reported a 3 per cent rise in premium income during October 2008. For the April-November period, premium colelctions grew 9.57 per cent to Rs 20,278 crore.

The premium collection for four public sector insurance company declined 0.68 per cent in November, with United India Insurance leading the pack with a growth of 11.2 per cent in gross premium collected during the month.

Among the private insurers the premium underwritten by ICICI Lombard fell 18 per cent in November to Rs 230.54 crore.

“Our business is stable and more dependent on retail. Slowdown has not affected us so far but we need to eatch the next two months, ” said Iffco Tokio CEO S Narayan.

"This year the industry growth rate will fall to around 5 per cent due to the overall environment," added Vishakha Mulye, executive director ICICI Lombard General Insurance.