Latest news with #NewIndiaAssurance
Time of India
2 days ago
- Business
- Time of India
PSU insurers cover much more now
Mumbai: Public sector general insurers, including the listed New India Assurance , are slowly clawing back market share in retail segments such as motor and health insurance , after years of being outdone by more agile private peers. Improvements in settlement claims and higher loss ratios in certain pockets for private insurers have helped tilt the scales. The reversal, which began last year, is being driven by improvements in digital servicing and claims turnaround times, as well as pricing reset in the industry. Explore courses from Top Institutes in Select a Course Category Digital Marketing others Cybersecurity Artificial Intelligence MBA MCA Degree Project Management healthcare Operations Management PGDM Others Leadership Data Analytics Design Thinking Finance Data Science Data Science Public Policy Technology Product Management Management Healthcare CXO Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Four public sector insurers including New India Assurance and National Insurance saw their market share inch up by more than four percentage points to 35%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo Public sector firms like New India Assurance and Oriental Insurance grew premiums by up to 15% in the June quarter, outpacing the industry average of 8-9%. The gains are coming after many years of steady market share loss to private competitors. Private sector insurers were gaining market share with quick service of claim settlement. Live Events "In FY25 Q3 and FY25 Q4, we have the PSUs, they have buckled the trend and they have gained significant market share also in motor segment," said Sanjeev Mantri MD and CEO ICICI Lombard 's who during an investor call in April. Private players, long aggressive in fire and commercial lines, are pulling back amid rising loss ratios and tighter reinsurance terms. "Fire used to run at a low loss ratio of around 50% which is now closer to 70% and that is the reason private sector insurers are not aggressive," said a senior executive of a general insurance company. "GIC Re has cracked down due to deterioration in this portfolio in the last two years, tightening capacity and so the private sector is going slow." Public sector insurers, once seen as slow, are regaining traction in group health and motor segments through pricing aggression. As a result of intense competition in the motor segment driven by PSU insurers , COR for motor (industry) increased to around 124% from 119% for FY24. ICICI Lombard, largest listed private non-life insurer, said in its earnings call that public sector players are winning business with aggressive pricing.
Indian Express
3 days ago
- Business
- Indian Express
Premium mobilisation: PSU non-life insurers outperform private players in June quarter
Public sector general insurance companies outperformed their private sector rivals in the first quarter ended June 2025, recording a 14.6 per cent increase in gross premiums underwritten—well above the industry average of 8.84 per cent. They also succeeded in expanding their market share during this period despite an overall slowdown in the growth in health insurance premium. The four PSU general insurers reported a premium mobilisation of Rs 27,787 crore for the June 2025 quarter as against Rs 24,233 crore a year ago, according to figures available with the General Insurance Council. Industry leader New India Assurance posted a growth of 15.2 per cent at Rs 12,299 crore, Oriental Insurance showed a growth of 21.4 per cent, National Insurance 14.93 per cent and United India 7.17 per cent growth. New India Assurance also increased its market share from 14.67 per cent in June 2024 quarter to 15.51 per cent in the June 2025 quarter. Oriental Insurance also increased its market share from 6.46 per cent to 7.34 per cent during the same period and National Insurance from 4.78 per cent to 5.04 per cent. At the same time, among private players, ICICI Lombard showed a growth 0.61 per cent at Rs 7734.86 crore in premium underwritten for the June quarter. Bajaj Allianz General Insurance posted a growth of 9.63 per cent and Reliance General Insurance 1.60 per cent. ICICI Lombard's market share declined from 10.57 per cent to 9.75 per cent in June 2025 quarter. The overall industry premium underwritten increased by 8.84 per cent to Rs 79,301 crore for the June quarter, according to the GI Council. Total health premium underwritten increased by 8.12 per cent to Rs 32,343 crore in the June 2025 quarter as against a growth of 16.58 per cent in the June 2024 quarter. In June 2025, the non-life insurance industry reported a premium of Rs 23,422.5 crore, representing a 5.2 per cent growth compared to the 8.4 per cent growth reported in June 2024. 'The industry's transition to the 1/n rule, slowing health, and subdued PV growth have affected the industry's performance, partially offset by renewals in the fire and engineering segment,' said Saurabh Bhalerao, Associate Director of CareEdge Ratings. The '1/n rule' in insurance refers to an accounting method where commissions for long-term insurance policies are recognized evenly over the duration of the policy, rather than being recorded entirely at the outset. This represents a shift from earlier practices that allowed full commission recognition upfront. As a result, this change affects how insurers report their premiums, often leading to a lower reported premium in the initial period — particularly impacting public sector general insurers. Insurance industry sources say that premium collections from government-backed health schemes have dropped sharply, as many state and central programs have shifted from insurance-based models to trust-based funding. This change has reduced the overall premium inflow for insurers. At the same time, steep hikes in health insurance premiums — driven by rising medical costs, an 18 per cent GST, and higher hospital expenses — have put pressure on household finances. As a result, consumer demand has declined, and retail health insurance growth has slowed to around 10–13 per cent in FY25, compared to 20–25 per cent in earlier years. Non-life insurance premiums crossed the Rs 3-lakh crore mark in FY25, driven by supportive regulations, rising Insurtech adoption, accelerating digitalisation, and an expanding middle class. The government's Bima Trinity push is poised to accelerate growth in the non-life insurance sector. Standalone health insurers are expected to maintain their dominance in the retail health space. 'At the same time, the trajectory of motor insurance will closely follow vehicle sales and the upcoming revisions to third-party tariffs. The proposed rollout of composite licences could reshape the competitive landscape in the medium term. However, rising competition and global geopolitical uncertainties will remain crucial watchpoints for the sector,' it said.
Mint
12-07-2025
- Business
- Mint
IRDAI pulls up 8 top insurers over health portfolio lapses, may take coercive action — Report
The Insurance Regulatory and Development Authority of India has started the process to issue show cause notices to as many as eight insurance companies after allegedly finding lapses in their health insurance portfolios, a report said. As per the report by CNBC TV18 on Friday citing sources, the eight companies that were are being sent show cause notices by the IRDAI include — Niva Bupa Health Insurance, Star Health & Allied Insurance, Care Health Insurance, ManipalCigna Health Insurance, along with New India Assurance, Tata AIG General Insurance, ICICI Lombard General Insurance, and HDFC ERGO General Insurance. Livemint could not independently verify the authenticity of the report. This article will be updated if IRDAI releases a statement. According to the report, IRDAI flagged multiple violations committed by the insurers with regard to the implementation of its Health Insurance Master Circular, issued in May 2024. The circular outlines strict norms for claim settlement time, cashless approvals, and customer information disclosures. Other violations include — unnecessary deductions from payouts of claims, improper rejection of claims and delayed claim settlement exceeding prescribed timeline. The IRDAI had last month found major lapses in health insurance claim processes of these insurers after it conducted inspections, the CNBC TV18 report says. In its board meeting next week, the IRDAI is reportedly going to formally discuss issuing the show cause notices to the companies. If the insurers remain non-compliant following the evaluation of their responses, the regulatory body may take coercive actions, including financial penalties or directions to refund amounts (with interest) to affected policyholders, according to the report. The IRDAI's plan comes simultaneously with the Centre's plans to bring its existing health insurance claims portal under the finance ministry and insurance regulator to curb overcharging by healthcare providers, which was reported by Reuters earlier. New India Assurance and ICICI Lombard have acknowledged the action by IRDAI, saying that these were part of routine regulatory supervision to strengthen compliance of operations. They also emphasised that they had taken up all necessary corrective measures, including simplifying overly detailed Customer Information Sheets and reinforcing Claims Review Committee membership rules. Other insurers have not yet issued a response.
Time of India
09-07-2025
- Business
- Time of India
ET Make in India SME Regional Summits: This insurer is the safety net every MSME needs
Live Events The ET Make in India SME Regional Summits reached their fourth destination this year in Thane, on June 26. As India's leading forum for engaging with the nation's MSMEs at the local level, the Summits create connections between businesses, facilitators, major industry players, and government officials, resulting in focused networking that addresses the specific needs of different industrial the banner 'Thane means business: Manufacturing excellence, entrepreneurial drive', this edition highlighted one of India's most advantageously-located industrial hubs. Located near Mumbai, Thane has easy access to the infrastructure and financial services essential for MSME development and trade competitiveness. The region hosts a diverse industrial ecosystem, chiefly enterprises engaged in chemical, pharmaceutical, and there are drawbacks too. Thane is vulnerable to unforeseen events such as incessant rainfall and floods. And unlike larger corporations, pharma and chemical MSMEs lack the resources to maintain extensive backup systems, leaving them exposed when natural disasters or other emergencies disrupt their carefully-calibrated Mirchandani, Deputy General Manager of NIA, spoke about what her company is doing to safeguard enterprises against such risks. Here are the highlights from her fireside chat at the ET Make in India SME Regional Summit - Thane, titled 'Empowering MSMEs through comprehensive insurance: Bridging the protection gap with New India Assurance'.When you're running on razor-thin margins (and most MSMEs do), natural disasters aren't just business risks. They're existential 2005 Mumbai floods, for example, tested the resolve of every business in the Mumbai Metropolitan Region. And for NIA, it was a moment that defined its approach to MSME insurance. As Mirchandani said: 'Floods are not new to Mumbai. They are not new to Thane. They are not new to the Dombivli and Bhiwandi belt. And we are not new to floods.'She added that NIA has the best settlement ratios in this context, which is critical for business continuity. Its expertise in handling catastrophic claims has made its insurance products, including for fire, one of the most sought-after ones, particularly among MSMEs that rely on bank from flood and fire insurance, NIA also covers specialised cover for workmen's compensation, machinery breakdowns, and marine insurance for transportation."You can customise things the way you want. You can choose one or two products or have a number of them in one policy for seamless cover," Mirchandani explained. 'It's insurance that adapts to your business, not the other way around.'Here's something most small manufacturers in Thane's chemical belt don't know: you might already be breaking the law. The Public Liability Industrial Act of 1991 was updated in December 2024, and the implications are staggering. If you're manufacturing, trading, storing, or transporting certain chemicals, you're now legally required to have specific insurance limits? They've jumped from Rs 5-15 crore to Rs 150-500 crore, linked to paid-up capital. Non-compliance can result in fines or business shutdown. "Many of you may not be aware, but it is compulsory," Mirchandani emphasises. "It's now a statutory obligation to take this insurance policy."The push is not about compliance, but survival. In the event of a chemical leak, when third-party property gets damaged or when lives are affected, this insurance is the difference between staying in business and closing down digital-everything, NIA is aware that the most important person in the MSME insurance ecosystem is still "that good old agent around the corner'. That acquaintance who's been handling insurance for years, someone who's the one-point contact for everything from policy purchase to claims service."This is the most preferred mode. Despite so much digitisation, this continues to be the most preferred form of communication even today," Anjali Mirchandani a reminder that in the world of small business, relationships still matter more than technology. MSMEs want someone they can call when things go wrong, someone who understands their business and can guide them through the complexity of insurance environmental regulations tighten and Environmental, Social, and Governance (ESG) norms become mandatory, NIA is already preparing for the next wave of MSME insurance needs. Pollution liability insurance, which is currently not a priority for most small businesses, is likely to become essential as environmental responsibility becomes non-negotiable."The environment is becoming a fundamental issue in this country. Any and every one of us has to be responsive to the fact that if we are causing any damage to the environment, we need to be held responsible for it," Mirchandani in all, NIA isn't just selling insurance; it's selling the ability to sleep at night. Whether it's protecting against floods and fires, ensuring compliance with new chemical industry regulations, or providing comprehensive coverage that doesn't break the bank, the insurer has positioned itself as an institution that understands what small businesses need.
Time of India
01-07-2025
- Entertainment
- Time of India
Pirates of Bollywood have producers running for cover
Hindi film producers are increasingly seeking insurance against piracy-related losses, especially for big-budget films, due to significant financial setbacks. Insurers are hesitant to underwrite this risk because quantifying piracy losses is challenging. While some advocate for stricter anti-piracy laws, others believe insurance could make producers complacent, adding to existing funding challenges within the industry. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Hindi film producers are increasingly seeking insurance protection against piracy-related losses, particularly for big-budget films, amid reports of significant piracy losses. However, insurers are hesitant to underwrite the risk, industry insiders issue of piracy has come into focus following reports that producer Sajid Nadiadwala suffered estimated losses of ₹91 crore due to a leak of Salman Khan-starrer Sikandar, which was released in film is insured for standard production and liability risks with New India Assurance , people aware of the matter said. However, losses due to unauthorised copying and distribution are not standard inclusions, they noted."Studios working on high-budget releases have approached us for piracy cover, particularly during the final edit and digital transfer stages," said Sumant Salian, business head of media and entertainment at Alliance Insurance Brokers. "The fear of content leaks before release is growing."According to a recent Media Partners Asia report, if piracy remains unchecked, revenue losses of the digital video industry in India are likely to double to $2.4 billion, or about ₹20,565.5 crore, by 2029 from $1.2 billion in 2024."Piracy continues to impact revenues. It is crucial that producers put in an explicit clause covering anti-piracy losses and enforcement costs while opting for film distribution insurance ," said Suniel Wadhwa, a veteran film distributor. "There are discussions going on between producers and insurance companies to obtain cover for film piracy," he while the demand for piracy cover is both legitimate and increasingly urgent, insurers face significant hurdles in addressing it. For one, it is difficult to quantify losses due to piracy, they said."There is demand for piracy cover, especially after the piracy of Hindi films such as Double Dhamaal (2011) and Udta Punjab (2016). But insurers are reluctant to underwrite first-party piracy risk, as it is difficult to quantify and prove losses," a senior executive at an insurance broker said, requesting anonymity. "Unless a policy is explicitly structured to protect a producer from film piracy and associated losses, an insurance company would not respond," the executive producers believe that they should combat piracy through systemic changes rather than relying on piracy insurance coverage."I think we need to fight piracy by bringing in stringent laws instead of recovering losses from piracy cover. Piracy is deeply entrenched... I think a piracy cover will make producers complacent," producer Rajesh R Nair said. "Also, a piracy cover is an additional cost to producers at a time when there are funding challenges. Granting the industry 'industry' status can eradicate these problems," he added."Pirates typically target big films," Nair India, the film industry typically relies on two main types of insurance - for production and distribution. Film production insurance typically covers delays, cast or crew illness, equipment damage, and liability under errors and omissions (E&O) policies. Film distribution insurance, on the other hand, protects against damage or loss of film prints or digital masters, delays in theatrical releases, business interruptions, and losses arising from leaks or piracy before release or during the early stages of digital roll-out.
