There have been steady losses in general insurance segment due to large claim settlements and other negatives like falling interest rates. To even out the loss, non-life insurers are planning to increase the premium rates by 10-15 per cent in certain segments to protect their interest.
“I won’t be surprised if the premia go up as the pricing has already reached rock bottom,” IRDAI member (non-life insurance), P J Joseph told.
Insurers have zeroed in on over 10 such segments, including pharma, power and cement under property, and even group health insurance, where they are planning to increase the premia going forward. Premia may go up in the range of 10-15 per cent in these segments next financial year.