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Life insurers said that the seven pages draft application form proposed by IRDA (Insurance Regulatory and Development Authority) to facilitate need-based selling is too complex, according to media reports. Read more
The government has put on hold its plan to list state-run general insurers, with the finance ministry taking the view that the current financial health of these companies is not conducive for listing. Read more
Indian general insurers are not yet ready to be listed on stock exchanges as they are yet to make profits, reports the Hindu Business Line citing Ashok K. Roy, chairman and managing director of General Insurance Corp. of India Ltd. Read more
General insurers, which have been in losses for much of the last decade, are working out novel ways to boost their income, including charging higher premium for those who park their cars in open, and from those who are in field jobs such as sales. Read more
State-run general insurance companies are setting up a common third-party administrator to settle medical insurance claims, a  move aimed at trimming their unwieldy claims ratio and boosting profitability.
The claims ratio, or percentage of claims to the premium earned, of these public sector companies in health insurance is over  120% and they blame third-party administrators (TPAs) for their spiraling losses in the segment. Read more
After life insurers, it’s general insurers who are knocking at the finance minister’s door, calling him to save the industry from a worsening situation.
Finance minister P Chidambaram will meeting general insurers in New Delhi recently to understand the problems of the industry.
The Rs 60,000 crore general insurance industry is in crisis as all its vital financial parameters are shaky despite the sector showing a growth of 20-25 per cent in premium collection. Its massive losses (over Rs 10,000 crore in 2011-12) are a result of cut-throat competition post detariffing period, regulated third party motor premium and losses in health insurance portfolio. Read more