Aiming to clock around 15 per cent growth in premium income in the current fiscal, Tata AIG General Insurance on Sunday said it will take a slew of measures including expanding the product basket in the existing segments, starting a new vertical and opening new branches.
"Last fiscal, our premium income grew by around nine per cent. It may be around 15 per cent this fiscal," Tata AIG General Insurance's CEO and Managing Director Gaurav D Garg told PTI here.
Tata AIG General Insurance had generated Rs 882.93 crore as premium income where motor insurance contributed 25 per cent followed by personal accident, health and travel segments putting 20 per cent together. The commercial segment shared the remaining 55 per cent.
Garg expects the industry growth would be below 10 per cent this fiscal as compared to around nine per cent in 2008-09.
During the current fiscal, Tata AIG General Insurance would focus on segments like motor, small business, health, rural and retail segments for growth.
"These segments have high-growth potentials and we want to focus on these areas to bolster growth," Garg said, adding that the company would either expand the existing product baskets or launch new products in these areas during the current fiscal.
Tuesday, June 30, 2009
Recession : CBI survey shows Insurance companies are the most optimistic
Although the three months to June saw levels of business, income and profitability continue to fall, this was at a much slower pace than earlier this year. This suggests the industry may now be on a gradual path towards recovery, though differences between the sectors remain.
Insurance companies are the most optimistic about growth in business over the coming quarter, while banks also expect volumes to rise. Building societies have experienced extremely tough business conditions since early 2008, but are now hopeful that volumes, income and profitability will stabilise in the next quarter. By contrast, securities traders and investment managers expect the recent improvement in their business to be short-lived, with volume declines expected to resume next quarter.
Life insurance
Every respondent reported business volumes and profitability to be down on the previous three months, the latter no doubt due to sharp falls in income values and spreads staying flat. However, optimism among life insurers was high, most likely due to expectations of growth in both business volumes and profitability over the coming quarter.
General insurance
Business volumes fell in the last three months, despite expectations of strong growth. This, along with a fall in income values, outweighed the advantage of falling costs, thus leading to a marginal decline in profitability. Nonetheless, optimism rose further, with business volumes set to increase over the next three months.
Andrew Kail, UK insurance leader, PricewaterhouseCoopers LLP, said:
“General insurers continue to feel positive about their outlook however business levels are down when compared to last quarter’s as planned rate increases are not being seen at the levels predicted. Previous plans to increase recruitment have been reversed, bringing the sector in line with other areas of financial services sector. Modest spending on regulatory compliance is a surprise, given the requirements of Solvency II. Despite cost reduction measures, some insurers now expect profitability to fall as the cost of claims will probably increase as the impact of the recession bites.”
“Life insurers report the most positive results in sentiment for five years, after seven consecutive quarters of negative outlook. Business however, remains subdued for now. The industry is hoping for a recovery in fortunes following recent rises in the equity markets and some positive news on the housing market. Expense reduction and customer retention are still the order of the day and there is nothing in the survey results to suggest an upturn in business has yet materialised.”
Insurance brokers
Profitability grew in the current quarter, but at a much slower pace than in March’s survey – likely due to a comparatively stronger performance overall in the previous three months. The increase in profitability is expected to gather pace over the next quarter. Numbers employed fell at their slowest rate over their five quarters of decline so far, and a further easing in the pace of deterioration is expected in the next three months.
Insurance companies are the most optimistic about growth in business over the coming quarter, while banks also expect volumes to rise. Building societies have experienced extremely tough business conditions since early 2008, but are now hopeful that volumes, income and profitability will stabilise in the next quarter. By contrast, securities traders and investment managers expect the recent improvement in their business to be short-lived, with volume declines expected to resume next quarter.
Life insurance
Every respondent reported business volumes and profitability to be down on the previous three months, the latter no doubt due to sharp falls in income values and spreads staying flat. However, optimism among life insurers was high, most likely due to expectations of growth in both business volumes and profitability over the coming quarter.
General insurance
Business volumes fell in the last three months, despite expectations of strong growth. This, along with a fall in income values, outweighed the advantage of falling costs, thus leading to a marginal decline in profitability. Nonetheless, optimism rose further, with business volumes set to increase over the next three months.
Andrew Kail, UK insurance leader, PricewaterhouseCoopers LLP, said:
“General insurers continue to feel positive about their outlook however business levels are down when compared to last quarter’s as planned rate increases are not being seen at the levels predicted. Previous plans to increase recruitment have been reversed, bringing the sector in line with other areas of financial services sector. Modest spending on regulatory compliance is a surprise, given the requirements of Solvency II. Despite cost reduction measures, some insurers now expect profitability to fall as the cost of claims will probably increase as the impact of the recession bites.”
“Life insurers report the most positive results in sentiment for five years, after seven consecutive quarters of negative outlook. Business however, remains subdued for now. The industry is hoping for a recovery in fortunes following recent rises in the equity markets and some positive news on the housing market. Expense reduction and customer retention are still the order of the day and there is nothing in the survey results to suggest an upturn in business has yet materialised.”
Insurance brokers
Profitability grew in the current quarter, but at a much slower pace than in March’s survey – likely due to a comparatively stronger performance overall in the previous three months. The increase in profitability is expected to gather pace over the next quarter. Numbers employed fell at their slowest rate over their five quarters of decline so far, and a further easing in the pace of deterioration is expected in the next three months.
Classic Motor Insurance
Peter Best Insurance Services Ltd is a specialist insurance broker with over 21 years experience in the collectable cars, motorbikes and commercial vehicles markets.
From a single club scheme launched in 1985, they have grown to become one of the largest and most trusted names in Collectors Car Insurance. In addition, their general insurance office provides competitive premiums from leading insurers for your private motor, household, travel and commercial insurance needs.
The company is now able to provide you with on-line quotes and purchases for Classic Cars, (including club schemes for Mercedes Benz and MG), Classic Motorcycles and Classic 4×4 vehicles. You can get an instant quote using our BEST WebQuote system and purchase the policy online by registering your details with them.
With their interest in the classic motor insurance market, they have strong connections with many of the car clubs such as the Mercedes Benz Club and the MG Car Club. This enables them to offer discounted premiums to existing club members, providing they can supply their membership number.
Although Peter Best Insurance Services Ltd specialises in the classic vehicle field, they do not neglect their clients other insurance requirements, such as private motor, household, travel, etc.
As a specialist classic motor insurance market, Peter Best Insurance Services Ltd have bespoke schemes for those with good driving records, in particular:-
© Best Driver - a quality comprehensive policy with unlimited mileage with own business use. Europe-wide cover and DAS Legal Expense insurance included.
10 Plus - a second car policy allowing up to 5,000 miles per year, comprehensive cover for family-type vehicles over 10 years old (excluding convertible models). They also provide Europewide cover including roadside assistance and recovery. No Claims Bonus is not used on this vehicle and is therefore free to keep on your everyday vehicle. There is no agreed value. The Policy is based on their successful Classic Car schemes.
From a single club scheme launched in 1985, they have grown to become one of the largest and most trusted names in Collectors Car Insurance. In addition, their general insurance office provides competitive premiums from leading insurers for your private motor, household, travel and commercial insurance needs.
The company is now able to provide you with on-line quotes and purchases for Classic Cars, (including club schemes for Mercedes Benz and MG), Classic Motorcycles and Classic 4×4 vehicles. You can get an instant quote using our BEST WebQuote system and purchase the policy online by registering your details with them.
With their interest in the classic motor insurance market, they have strong connections with many of the car clubs such as the Mercedes Benz Club and the MG Car Club. This enables them to offer discounted premiums to existing club members, providing they can supply their membership number.
Although Peter Best Insurance Services Ltd specialises in the classic vehicle field, they do not neglect their clients other insurance requirements, such as private motor, household, travel, etc.
As a specialist classic motor insurance market, Peter Best Insurance Services Ltd have bespoke schemes for those with good driving records, in particular:-
© Best Driver - a quality comprehensive policy with unlimited mileage with own business use. Europe-wide cover and DAS Legal Expense insurance included.
10 Plus - a second car policy allowing up to 5,000 miles per year, comprehensive cover for family-type vehicles over 10 years old (excluding convertible models). They also provide Europewide cover including roadside assistance and recovery. No Claims Bonus is not used on this vehicle and is therefore free to keep on your everyday vehicle. There is no agreed value. The Policy is based on their successful Classic Car schemes.
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