The non-life insurers witnessed a 2.33% decline in their gross premium income collection in February 2009 as compared to 6% in January 2009.
High discounts, ongoing economic slowdown and the cut-throat competition are considered to be the reason for this decline.
Public sector general insurer National Insurance recorded a 10.43% fall in growth, while New India, Oriental Insurance and United Insurance recorded a growth of 3.05%, 7% and 10.11% respectively.
Private sector insurers like Bajaj Allianz and ICICI Lombard recorded a decline of 14.21% and 9.96% respectively.
Non-life insurance businesses were growing at a 10% rate since the time of detariffing in 2007. But difficulties in motor insurance sector coupled with majority of the companies postponing their expansion plans and reducing businesses related to fire and engineering policies have hit the insurers hard.
The insurer also resorted to offering high discounts in a move to expand their customer base as the premium collection decelerated over the last few months.