Premiums for general insurance products under the natural catastrophe segment could rise with an increase in the number of incidents, such as floods and earthquakes, that hit parts of India in the past two years.
Insurance companies' senior executives met recently to discuss this issue and decided that with the rise in claims, premiums could see an upward revision of about 10-20% from the next fiscal.
Insurance companies have taken a hit of Rs 4,800 crore due to claims arising from the recent floods that hit Chennai and other parts of Tamil Nadu.
Public sector insurers, including United India Insurance, have taken the largest hit. "With the rise in claims, it is imperative that premiums also see a proportionate rise," said a senior general insurance executive.
