The non-life insurance industry is expected to log negative growth this financial year (FY21) due to Covid-19 pandemic, according to a top official of Cholamandalam MS General Insurance Company, here on Tuesday.
V Suryanarayanan
Chennai: Announcing retirement from the Murugappa Group insurance firm, SS Gopalarathnam said V Suryanarayanan, President & COO, would take over as the Managing Director on July 1. The company is a joint venture between the Rs 381 billion turnover Murugappa Group and Mitsui Sumitomo Insurance Group, Japan.
Gopalarathnam said the non-life insurance industry would suffer de-growth in the first quarter of FY21. The Q2 business figures might be flat compared with Q2FY20. The industry could start logging growth from the Q3, but overall there might be zero growth or two per cent negative growth for FY21, he added. For Cholamandalam MS General, the business de-growth during Q1FY21 was about 14 per cent, he said.
The rural demand for two-wheelers will give impetus to the automobile insurance business. An increase in demand for two-wheelers has resulted in better business for the non-life insurers, he added. The Insurance Regulatory and Development Authority of India too recently tweaked the norms for long-term policies, resulting in lower premium outgo for new vehicle buyers.
Gopalarathnam said the non-life insurance industry would suffer de-growth in the first quarter of FY21. The Q2 business figures might be flat compared with Q2FY20. The industry could start logging growth from the Q3, but overall there might be zero growth or two per cent negative growth for FY21, he added. For Cholamandalam MS General, the business de-growth during Q1FY21 was about 14 per cent, he said.
The rural demand for two-wheelers will give impetus to the automobile insurance business. An increase in demand for two-wheelers has resulted in better business for the non-life insurers, he added. The Insurance Regulatory and Development Authority of India too recently tweaked the norms for long-term policies, resulting in lower premium outgo for new vehicle buyers.