According to a report by Kotak Institutional Equities, the two key reasons for the weak growth are (i) a slowdown in the fire business by 10% year-on-year( YoY) vs. 34% growth in YTD FY2020 (ii) further slowdown in motor TP (up by 3% YoY vs 10-38% YoY growth in last 5 months) PSU insurers bumped up the overall growth in crop business by 13% YoY. The report said, “ICICI Lombard (down 3% YoY), Bajaj (up 2% YoY) and Chola MS (up 2% YoY) posted weaker-than-industry numbers, on ex-crop basis. SBI (up 40% YoY ex-crop) maintained robust momentum.” Fire premiums declined overall 10% in December 2019 after a strong growth in range of 25-60% recorded in last 10 months. Large private players including ICICI Lombard (down 40% YoY), HDFC Ergo (down 50% YoY) and Bajaj (flat YoY) posted sharp declines in growth rates, except SBI General, which grew at ~30%, the report stated. Increase in reissuance rates by GIC in eight occupancies has likely driven higher volumes in the past few months. … [Read more...] about General Insurers reported weak growth in Dec’19: Kotak Institutional Equities Report
Fairfax Group-backed general insurance start-up Digit Insurance on Tuesday said it has received approval from the Insurance Regulatory and Development Authority of India (Irdai) to raise USD 84 million (about Rs 600 crore) from equity investors A91 Partners, Faering Capital and TVS Capital. The new round of investment will take Digit's total funding to USD 224 million (about Rs 1,600 crore), the company said. This is one of the largest funding rounds in the domestic general insurance space, the company, which offers a portfolio of products across motor, travel, property and health insurance, claimed. Within two years of operation, Digit now serves more than 5 million customers and has achieved close to USD 300 million of annualised premium and has 1.2 per cent market share in general insurance industry. In addition to the three high quality institutions investing in the company, 72 Digit employees have also invested over USD 4.34 million along with the investors as part of the … [Read more...] about Fairfax-backed Digit Insurance gets IRDAI nod to raise $84 mn
Mumbai: Thousands of small and medium enterprises (SMEs) are not covered by property insurance as the premium is too low for agents to make multiple visits. Now, new-age insurer Digit Insurance has made it viable to provide a cover to such small businesses by automating the underwriting process. It has integrated various underwriting inputs, such as flood risk maps, with its software. This makes it possible for banks and agents to issue policies across the counter. “The problem with small businesses was that the pricing was extremely granular and depended on multiple factors. These included occupancy, location, and whether there was a basement involved as flood risks are extremely severe for small businesses. Also, a lot of data was not available previously,” said Digit Insurance chairman Kamesh Goyal. He added that because of multiple factors that had to be taken into account while underwriting a proposal, the policy issuance would take two-three days. What has changed … [Read more...] about Digit Insurance eases SME property cover using automation
"But the trouble is when you have this large population that's going through the system and they're requiring more surgery and they're living longer, what the younger person — the younger and healthier person — sees is their costs are going up, and they're not perceiving they're getting anything for it because they're subsidising the older generation. … [Read more...] about Private health care facing ‘death spiral’ if young, healthy users abandon insurance, report says
"This idea that the insurance part of the delivery of that system should be monopolised by government and this idea that I shouldn't be able to select between a public social insurance system and a private social insurance system who can be my single funder is just a bit of an oddity to me," Mr Fitzgibbon argued. … [Read more...] about Private health insurance at a ‘tipping point’, with Australians dropping cover in droves
Labor's policiesIn the lead-up to the election, Labor said private health insurance was turning into a con, attacking the big funds for lifting their premiums each yearIt wants a Productivity Commission inquiry into private health insurance … [Read more...] about Private health insurance leaves plenty of people unhappy, so how can it be fixed?