National Insurance Company Ltd (NIC) expects a slowdown in growth rate this fiscal. The public sector non-life insurer, which had grown by 25 per cent in 2011-12, is expecting to grow by 20 per cent in 2012-13.
According to A.V. Girija Kumar, Director and General Manager, NIC, the lower growth rate would be primarily on the back of a higher base and an overall slowdown in the economy impacting infrastructure projects.Â The company expects its premiums to grow to Rs 9,393 crore this fiscal compared with Rs 7,790 crore in 2011-12.
â€œCompared to last year, the growth has been lower this year. Apart from the base effect, this is because of a moderation in growth in motor and health segments. This apart, because of the slowdown in the economy, infrastructure projects have not taken off. Property business, especially construction insurance business, has not been so substantial,â€ Girija Kumar told newspersons on the sidelines of an insurance seminar organised by the Confederation of Indian Industry.