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General insurers, both from private and public sector, had reportedly approached IRDA for 10%-40% revision in health insurance tariff to protect losses
Kolkata: State-run National Insurance Company (NIC) may soon increase the cost of health insurance premium to offset losses, reports PTI quoting company sources.
The hike could be between 20% and 40% for NIC health products, sources in the city-headquartered firm added.
Meanwhile speaking on the sidelines of an interactive session of Indian Chamber of Commerce here on Friday NIC chairman and managing director NSR Chandraprasad said: “We expect to get the IRDA (Insurance Development and Regulatory Authority) approval on health insurance tariff in a month's time.”
State-run General Insurance Corporation (GIC) chairman Ashok K Roy said there is need for upward revision of health tariff for insurance companies and at the same time hospitals should also reduce their costs.
GIC is a notified Indian reinsurer.
A senior official of NIC on the condition of anonymity said if IRDA’s approval comes without any observations or riders, then the implementation of higher tariff could occur from as early as April 2013.
General insurers, both from private and public sector, had reportedly approached the regulator for 10%-40% revision in health insurance tariff to protect losses.
“They are short in solvency and losing money on underwriting. I think insurers will wait for some more time, may be one or two more years till finances improve,” GIC chairman & managing director Ashok K Roy said
Kolkata: Non-life insurers are unlikely to hit the capital market to raise resources and are expected to wait for a year or two because of weak financials, reports PTI quoting a top official of an insurance company.
“None of the insurance companies are in a position to list their shares. Insurers are not making a profit. Their finances are fragile,” General Insurance Corporation of India (GIC) chairman & managing director Ashok K Roy told an interactive session of the Indian Chamber of Commerce here.
“They are short in solvency and losing money on underwriting. I think insurers will wait for some more time, may be one or two more years till finances improve,” Roy said.
The non-life insurance companies are not in favour of embedded value concept for valuation mentioned in the draft regulation by IRDA (Insurance Regulatory and Development Authority) on IPO (initial public offers).
Non-life insurers underwriting losses stand at Rs8,817 crore in 2011-12 down from Rs9,944 crore registered last year.
Back in September last year, IRDA had issued draft guidelines on initial public offers for general insurance companies.
Most of the non-life companies have already taken steps to improve their financials by revising the tariff in health schemes.
The draft norms non-life insurers from capital markets need to have at least 10 years experience. The insurers will also have to seek prior approval from IRDA for the public issue of shares.