The general insurance industry is unlikely to see huge losses arising out of the cyclonic storm Phailin, which hit the eastern coast last night, as most commercial installations and ports along Orissa and Andhra Pradesh are relatively less affected. That, and poor retail penetration in the region, are unlikely to result in major losses, say industry officials.
They, however, said that not only is the domestic general insurance industry closely watching the event, but global re-insurers are also keeping a tab on the developments.
Around 9 pm last night, the very severe cyclonic storm, Phailin, made landfall in Gopalpur in Orissa. Before the cyclonic storm hit the coast, some people lost their lives even as the authorities evacuated over five lakh (at the last count) from the storm-affected areas of the two states.
"Though it's very difficult to predict the amount of losses that will arise from 'Phailin', we don't expect huge losses from this calamity," Bajaj Allianz General Insurance md and chief executive Tapan Singhel said.