India’s insurers have fared quite well over the last quarter, even in the case of life products.
The latest insurance news that has been released from India has shown that the industry has done better than expected in terms of its profitability, including the life sector, which had been experiencing a slowdown in its collection of new business premiums.
The industry has been struggling under the widespread economic challenges and low penetration in the country.
However, the most recent insurance news appears to be showing that the industry in the country is holding its own and has reason to feel positive about its current direction. Insurers have been seeing a larger profit margin for the most recent financial year than they were experiencing during the previous fiscal year.
Life insurance news was particularly important because of the new business premium collection slowdown.
Despite that challenge, the insurance news is still indicating that the life sector has managed to fare better in its profitability than it had been. Within the private life industry, the largest player was recorded to be ICICI Prudential, which is the insurance branch of ICICI Bank. It recorded a raise in profits (after tax) of 8.09 percent for the full year that came to a close in March 2013.
That company’s annualized premium equivalent (APE) also so a rise, but by 13 percent in the most recent completed fiscal year. Of course, this insurance news didn’t just apply to the life coverage element of ICICI Bank. Even the general insurance arm performed better in the most recent fiscal year than it did in the year prior. For instance the gross premium of ICICI Lombard rose by 19.8 percent.
General insurers experienced a decrease in losses following April 2012, when the commercial third party motor pool was taken apart and the declined risk pool was established. Insurers provisioned highly in this sector. Therefore, the insurance news predictions are that as premiums increased, the losses will be decreased even further, enhancing profitability. This appears to be quite a promising trend and may indicate that the industry will experience a positive turnaround for the rest of this financial year.