Fire, group health, motor insurance premia may go up
Mumbai: Premiums in various segments like fire, group health insurance plan and third-party motor insurance are likely to go up in the wake of losses being incurred by insurers, a top United India Insurance executive said.
"There are certain lines of business like fire insurance, group health insurance and motor third party insurance where premium rates will go up. Insurance lines, which are making some kind of losses will see some hike in premium rates," United India Insurance Chairman-cum-Managing Director G Srinivasan told reporters here.
He, however, said the extent of hike would be consumer specific than across the board.
Reacting to proposed rise of FDI cap in insurance sector, Srinivasan said it would help in bringing more capital into the insurance industry.
He informed that the company was comfortable with recent IPO guidelines released for non-life insurers.
"We are quite comfortable with the guidelines (for IPO). We have profits in last five years," he said, adding the government will take the call on listing of the public sector general insurer.
About product launch, Srinivasan said the company is putting emphasis on upcoming new products in retail segment.
"We have sought IRDA's approval for one health insurance product recently," he said.
On the third party motor insurance where insurers are incurring losses, Srinivasan said a hike in the premium, especially in commercial vehicle segment, is necessary.
"Pricing in the motor third party, especially for commercial vehicle, needs to be increased by 30-40 percent," he said.
United India Insurance posted a 21 percent rise in net profit at Rs 192 crore in the first quarter of FY 13 against Rs 159 crore in the same period last fiscal.
The premium income has grown by 20 percent to Rs 2,428 crore from Rs 2,022 crore in the year ago-period against the industry growth rate of 18 percent.