The Hindu : Andhra Pradesh News : `Need for more insurance firms'

Online edition of India's National Newspaper
Friday, May 20, 2005

Andhra Pradesh

Andhra Pradesh

`Need for more insurance firms'

Staff Reporter

IRDA receiving many enquiries for licensing in the insurance sector IRDA receiving many enquiries for licensing in the sector

INKING A PACT: Liyaquat Khan, president, Actuarial Society of India (ASI), C.S. Rao, Chairman, IRDA and S.V. Mony, Secretary General, Life Insurance Council, exchanging files after signing an MoU in Hyderabad on Thursday. Photo: Arunangsu Roy Chowdh ury

HYDERABAD: The Insurance Regulatory and Development Authority (IRDA) Chairman, C.S. Rao, said that there is need for many more life insurance companies to come up to tap the huge and untapped business potential in semi-urban and rural areas.

Speaking to reporters here on Thursday, Mr. Rao said the Shriram group had applied for a licence in the life insurance sector in partnership with a South African firm, San Lam. The Punjab National Bank was also keen to obtain a licence in the same sector but made no formal application.

The IRDA was receiving a number of inquiries for licensing in the general insurance sector. They were all looking for Indian partners.

Performance lauded

Mr. Rao expressed satisfaction at the performance of insurance companies and said they were all discharging their liabilities well and were comfortable with the solvency levels. The life insurance premium had seen a 35 per cent growth rate and the general insurance 13 per cent last financial year. The growth of premium in life insurance,which generally slackened in the last quarter,was maintained at 35 per cent.

In the case of general insurance, double digit growth was unheard of, except in China. The growth was seven to eight per cent but it was a record 13 per cent this time.

He added that the entire non-life insurance sector was on road to de-tariffing. The `own damage' segment in motor industry, which was scheduled for de-tariffing from April 1, was postponed with industry players opposing selective moves. This has also led to putting off the exercise in the entire motor industry.

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