New India Assurance says renewal rates remain flat
Mumbai: Largest general insurer New India Assurance has started off the fiscal on a flat note with rates of renewal premium, which constitutes a significant chunk of their income, remaining stagnant and reinsurance rates declining up to 10 percent.
Usually, most general insurance contracts are of one-year tenure and come up for renewal during the first month of the fiscal.
"We have retained all our renewal rates during this financial year. Prices have been flat," New India Assurance chairman and managing director G Srinivasan said.
He, however, said there were a few accounts where loss ratios were not good or there was a perception of high risk, pushing up the rates in those accounts.
On the reinsurance rates, Srinivasan said the general experience in the market is soft regarding reinsurance rates which have softened up to 10 percent in the current financial year.
The largest general insurer further said the premium rates for the health insurance rates would remain at the current rates for some more time.
"We have revised rates in the last fiscal. This will remain so for some time," Srinivasan said, adding the rates in the group health insurance have corrected now after witnessing a fall in the recent months.
He also said the company, which had around Rs 100 crore premium from Rashtriya Swasthya Bima Yojna (RSBY) in the last fiscal, would increase its focus in this segment during this fiscal.
The general insurer will also increase its focus on the retail segment going ahead.
The New India Assurance reported a 29 percent rise in its net profit at Rs 1,089 crore in the last financial year. Its gross underwritten premium increased 14.4 percent to Rs 14,304 crore in the last financial year against Rs 12,504 crore in FY13.