New Delhi: State-run auto insurance providers are fast losing ground to private players and their market share could be under pressure unless PSUs change their strategy, says a J D Power study.
According to the study, ICICI Lombard ranked first in customer satisfaction index of auto insurance business in the country. The second and third slots are taken by Oriental Insurance Co and National Insurance Co respectively.
“As the market has been liberalised new players are coming in. Customers are now getting similar or even better services from private players,” J D Power Asia Pacific senior director (India) Mohit Arora said.
He said the average age of auto buyers has come down to 35 years from 39 years in the last seven years, which has changed the customers’ preferences.
“Speed of response is very important. PSUs have not been able to understand the market response. Unless they change their mindset, PSUs’ market share will be under pressure,” Arora said.
He said the state-run auto insurers enjoyed about 67% market share in 2007-08.
“Although the final report on auto insurance by IRDA (Insurance Regulatory and Development Authority) has not been published, we are expecting the PSUs’ share to come down by 6-10% for 2008-09,” he added.