General insurers have renewed over INR1 trillion (US$15.5 billion) worth of policies on 1 April, the time for most renewals by large customers of mega policies, despite increases of 10-30% in premiums for certain categories of corporate cover.
Among non-life insurers, state-owned National Insurance has been able to secure all the renewals, its Chairman Sanath Kumar said, adding that the company has been able to re-price group health insurance and hike some property policies where there have been frequent losses.
The privately-held Reliance General has been able to retain almost all of its clients as well for the current fiscal year which began on 1 April.
“We’ve retained almost all of our clients and we are expecting reasonable growth in premiums in the current fiscal year,” Mr Rakesh Jain, Reliance General’s Chief Executive said.
Mr Tapan Singhel of Bajaj Allianz General Insurance, however, said renewals by corporates, especially property and group mediclaim continue to be volatile. He expressed hope that the industry will look at pricing more rationally and work towards creating superior underwriting, service capabilities.
GIC Re had a good renewal
State-owned domestic reinsurer GIC Re also had a productive 1 April renewal season. It has been able to maintain its market share by meeting half of the reinsurance needs of the domestic market, reported Press Trust of India.
“Some segments have seen a price hike like catastrophe risks. Pricing is driven by experience of the accounts and the underlying exposures,” Ms Alice Vaidyan, GIC Re Chairperson said, adding: “Accounts with consistent losses have seen some premium increases across risk and catastrophe cover.”
Provisional data for non-life insurance companies released by the IRDAI for FY2016-17 show that total premium income soared by 32% to INR1.27 trillion, driven by a new government-subsidised crop insurance scheme. A