Growth in premium collection of general insurers halved

General coverage sector insurance premium aggregation growing dipped to 12.6% inch fiscal twelvemonth 07-08 from 22.3% inch FY 06-07.

The turn in the narrative however was that mediocre growing was restricted to state-owned companies. Most private insurance companies managed to set on a good show, with Reliance General Insurance registering a insurance premium growing of 113%.

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The growing charge per unit of the non-life insurance industry have taken a whipping at the custody of the free pricing policy. The policy removed the cap and gave companies the freedom to make up one's mind coverage insurance premiums and higher growing based on earlier years.

In the listing of major insurers, Reliance was followed by Cholamandalam General Insurance with 79%, piece Asian Insurance registered a negative growing of -1.86%.

Overall, the general coverage industry managed a insurance premium aggregation of Rs 28,130 crore in FY 07-08 — 12.6% More than it had achieved during FY 06-07.

During FY 06-07 the industry managed insurance premium of Rs 24,975 crore and registered a growing charge per unit of 22.3%.

The private sector companies which registered good concern with insurance insurance premium aggregation to the melody of Rs 11,231 crore, had focused more than on retail concern and better marketing, and had achieved a 28% growing in premium aggregations during financial 2008.

They had achieved Rs 8,716 crore the former year, in FY 2007. With growing inch premiums, the share of private sector inch insurance premium aggregation have surged to 40% in FY 07-08 from 35% in FY 06-07, additional a twelvemonth back it was 27%.

Reliance General coverage (RGI) managed a gross insurance insurance premium aggregation of Rs 1,946.4 crore during FY 07-08 with 113% growing in premium. The company collected Rs 912 crore last FY.

Business of Cholamandalam General Insurance's concern also grew by 79% from its aggregation of Rs 563.7 crore in insurance premium during FY 07-08.

In FY 06-07, the company collected Rs 314 crore. Bajaj Allianz full full general coverage managed 33% growing with coverage insurance premium aggregations of Rs 2,404 crore, while ICICI Langobard general insurance managed only a 11% growing with its premium aggregation of Rs 3,345 crore during FY 07-08.

Sandeep Bakhshi, MD, ICICI Langobard General Insurance Company Ltd said the industry is expected to turn at the charge per unit of 10% inch the approaching years.

Strengthening statistical distribution web and introducing new merchandises are fuelling the insurance premium growing in private sector which is to stay the focusing point for any company to pull off steady growing charge per unit in future is well, he said. "Investment in health-related merchandises and choosing the right portfolio of products, proper hazard direction are indispensable to keep long-term profitability," Bakhshi added.

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Meanwhile, the public sector companies managed to turn by lone 4% inch insurance premium in the same period. It collected Rs 16,899 crore in FY 07-08, while it was Rs 16,259 a twelvemonth ago. Except Asian Insurance, which registered a autumn of 2% inch insurance insurance premium aggregations during FY 07-08, all the other populace sector companies maintained a premium growing of 5-7%.

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