The general insurance industry is hoping for an increase in third party motor insurance rates for 2021-22.
The rates are notified by the Insurance Regulatory and Development Authority of India (IRDAI) on an annual basis and had not been changed last year due to the Covid-19 pandemic.
The new rates for 2021-22 are yet to be notified by IRDAI.
According to general insurers, the premium needs to be revised in order to make the segment sustainable.
Further, court judgements in the recent past have also had an impact on the sector.
“Our view is that last year we didn’t get a hike in rates . Before that in February 2020, exposure draft for an increase had come but then the first wave of Covid happened and that was put in the cold storage,” Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard, General Insurance, had said after the fourth quarter results in a media call.
Cash is the best insurance | Outlook Business outlookbusiness.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from outlookbusiness.com Daily Mail and Mail on Sunday newspapers.
BFSI has a very high risk exposure, but it has scored 65 in the index, indicating very effective and efficient risk management practices ICICI Lombard officials said.
Corporate risk index that uses risk measurement tool has been developed with the management consulting firm Frost & Sullivan covering 150 top companies from its own investment portfolio
BFSI has among the best risk management practices: ICICI Lombard
SECTIONS
Share
Synopsis
Banking, financial services and insurance BFSI with a score of 65m though has a very high risk exposure, it excels in risk management too with very effective and efficient risk management practices, according to ICICI officials. They (BFSI) are well positioned to handle current and future risks across dimensions.
Agencies
Likely over-investment in one or more risk dimensions but difficult to justify return on investments.
Regulated sectors like the BFSI have best risk management practices according to a new Corporate India s risk index launched by
ICICI Lombard, while new age sectors will still have a long way to go. The index which is based on current situation information of corporates is also expected to help attract foreign investments.