Insurance lines, which are making some kind of losses, will see some hike in premium rates says a top official from United India Insurance
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, reports PTI quoting a top executive from United India Insurance.
"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," G Srinivasan, Chairman-cum-Managing Director of United India Insurance told reporters.
He, however, said the extent of hike would be consumer specific than across the board.
Reacting to proposed rise of foreign direct investment (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 guidelines for initial public offerings (IPOs) 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%," he said.
United India Insurance posted a 21% rise in net profit at Rs192 crore in the first quarter of FY13 against Rs159 crore in the same period last fiscal.
The premium income has grown by 20% to Rs2,428 crore from Rs2,022 crore in the year ago-period against the industry growth rate of 18%.
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