Despite a hike in catastrophic and third-party (CAT) motor cover, general insurance industry is not laughing their way to the banks as premium for other segments remains flat if the renewals are any indication.
The general insurance industry has renewed around Rs 75,000 crore business on April 1, the first day of the new fiscal year 2016-17, at the previous year's premium levels, say market sources.
United India Insurance Chairman and Managing Director Milind Kharat said normally, around 80 per cent of our business gets renewed on April 1.
Market leader New India Assurance said there has been a premium hike of 10-15 per cent in fire portfolio due to higher premium charged for natural catastrophic risks but "the rates have remained flat in segments like marine and health insurance which are the larger segments for the industry."
"The premium for natural catastrophic risk has gone up because of higher losses the industry has suffered in last three years on account of a series of natural disasters," New India Assurance chairman and managing director G Srinivasan told PTI.
According to National Insurance Company Chairman and Managing Director Sanath Kumar, "There has been an agreement among insurers that the catastrophe cover should go up, in the aftermath of regular such perils striking the country, the last one being the Chennai floods."
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