New Delhi, Nov 23 (IANS): The pick up in auto sales during the festive season has revved up the business of insurers with motor premiums increasing 3 per cent yoy in October 2020.

Motor premiums were down for most part of the current fiscal and it fell 4 pet cent yoy in 2QFY21.

There has been a flurry of activity in automobile sales in October with four wheeler sales rising by 20 per cent and two wheeler by 15 per cent yoy.

Robust festive demand and a gradual rise in freight volumes and utilization rates supported premiums, Kotak Institutional Equities said in a report.

As per the report, motor own damage (OD) premiums was up 2 per cent yoy while motor TP (third party) was up 4 per cent yoy (decline of 5-8% yoy over the past three months).

Motor premiums have gradually improved from trough levels observed in April and May and will likely improve further, the brokerage said.

In the rise of the motor insurance business, new age players have emerged stronger while SBI, Tata and ICICI have performed better than the pack. Among key players, new age players like Acko and Go Digit witnessed strong growth in the motor business during the month, up 40 per cent yoy and 24 per cent yoy respectively post reporting weak overall growth in September 2020.

SBI reported a stellar 48 per cent yoy growth in motor led by 94 per cent yoy jump in TP; the company reported better-than-industry growth for the sixth consecutive month.

ICICI Lombard was up 12 per cent yoy; tie-ups with new OEMs and diversification of channels driver growth in motor. Tata AIG was up 28 per cent yoy; continued improvement over the past few months.