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The four public sector general insurance companies New India Assurance, United India Insurance, Oriental Insurance, and National Insurance Company have lost 800 basis points (bps) in market share in last five years to their private counterparts, the data from the Insurance Regulatory and Development Authority (Irdai) revealed.
In 2018-19, the four had a cumulative market share of 40.04 per cent, with New India Assurance having a market share of 14 per cent and United India Insurance with a market share of 9.63 per cent.
But, gradually in the past five years, these state-backed firms have lost their market share to private sector players, due to the declining health of their business. ....
The Insurance Regulatory and Development Authority (Irdai) of India is exploring the possibility of indexing annuity rates to government securities or the inflation rate so that they reflect the cost of living of consumers. Essentially, there may be a change to floating rates for annuity products from the fixed rate regime, which generally gives lower returns to customers. Subash Chandar Khuntia, Irdai chairman, said, “We are actively looking into this because we feel if the annuity rate is indexed to something which reflects the cost of living, it will be good for both the insurers and the policyholders”. “So, we are exploring the possibility of indexing the annuity rates with Gsec or inflation rate”, Khuntia said. ....