DFS Directs State-Run Insurers To Improve Underwriting Loss
4 State-run general insurers need to reduce incurred claim ratio which was currently hovering around 100: Secy
DFS Directs State-Run Insurers To Improve Underwriting Loss
Secretary emphasized on reduction of underwriting losses. Three companies have shown positive results and it was appreciated by him. He also wanted companies to increase the use of technology -Rashmi Raman Singh, CMD, Oriental Insurance Company, tells Bizz Buzz
Mumbai: The Department of Financial Services (DFS) has asked State-run general insurers to improve underwriting losses. The DFS has appreciated the improvement in the overall performance of the State-run general insurers.
In his first interaction with the CMDs of all the four State-run general insurers- New India, United, Oriental and National- the newly appointed DFS secretary M Nagaraju appreciated the good performance by them. Still, he asked them to reduce Incurred Claim Ratio (ICR), which was currently hovering around 100. Not to mention that the private-sector general insurers are having ICR in the range of 80-85 per cent at present. It is also a fact that everyone is surviving on the investment profit at present. Hence, the DFS wants the State-run general insurers to reduce their underwriting losses and bring it at par with their private sector peers.
The DFS secretary also nudged the State-run general insurers to increase rural business. As of now, Oriental is the sole state-run general insurer which is running the state-run Pradhan Mantri Fasal Bima Yojana (PMFBY).
Talking to Bizz Buzz, Rashmi R Singh, CMD, Oriental Insurance Company, says: “Secretary emphasized on reduction of underwriting losses. Three companies have shown positive results and it was appreciated by him. He also wanted companies to increase the use of technology.”
He also emphasized on development of new tailor-made products as per need of different segments of society, he added.
This review meeting was conducted for the previous fiscal year and the first half of the ongoing financial year as well. For the H1, National, New India and Oriental are in profit. Only United has registered negative growth for the period under review.
