The Hindu : Business : Non-life insurance maintains growth

Online edition of India's National Newspaper
Thursday, May 10, 2007
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Business

Non-life insurance maintains growth

Special Correspondent

Oriental plans IPO

KOLKATA: Even as insurance premium rates have fallen by 50 per cent in certain segments, overall volumes have been maintained by the India's non-life insurance industry in the detariffed regime.

However, the four public sector insurers have registered negative growth rates in segments like fire and motor own damage (OD), making it up in segments like engineering where they have doubled the premium income in the period between January and March 2007 over the same period in 2006.

This was revealed here during a FICCI insurance conclave on impact of detariffing on insurance industry and the post-detariffing scenario. The conclave was addressed by V. Ramasaamy, Chairman and Managing Director, National Insurance Company, and M. Ramadoss, his counterpart at the Oriental Insurance Company, besides Samir Bali, Director, Tax Advisory Services, Ernst & Young.

Mr. Ramasaamy said volumes had been maintained by all the 12 insurance companies, despite a sharp drop in premium, since the companies had succeeded in selling additional coverages with products fine-tuned to the requirements of customers.

Talking to reporters later Mr. Ramadoss said that his company was mulling an IPO which would help it go international and also introduce new products and tap rural markets.

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