General Insurance mkt may touch Rs 31k cr in ’08-09

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Mumbai, Jun 11: The non-life insurance industry is expected to underwrite a total premium of Rs 31,000 crore by the end of the current fiscal reckons KN Bhandari, secretary general, General Insurance Council. This is he says, will happen that despite the total free pricing regime . In 2007-08, the industry had a total premium of over Rs 26,000 crore.

“In fact the regulation was there at every level into the sector, which had marred its growth,” he said while addressing “Risk Summit 2008:Reinvening The Future” organized by Asia Insurance Post and Financial Express on Wednesday.

“It took six to seven years for the government to go for free pricing in a restricted environment. It was merely a couple of months ago that the full free pricing has been kicked off in the non-life insurance sector,” he said.

Things like strong economic growth and catch-up dynamics have helped the growth of non-life insurance sector.

According to him the non-life insurance market in certain segment has corrected itself and there shouldn’t be any subsidisation for the health insurance policies. Strong underwriting skills could be essential prerequisite for the further growth of non-life insurance sector.

Factors like best market business practice and self-regulation will also help the market a lot to grow properly.

Speaking about the fast changing situation in domestic life insurance market, P Nandagopal, CEO, Reliance Life Insurance said “We as private life insurers had expected that the market share of th Life Insurance corporation of India would come down by 10% by 2010. But the state-run life insurer has already lost more than 10% of its market share in last year.