Has Trust In Insurance Companies Reached A Peak Under Irdai's Leadership?
Life Insurance Today|January 2018

The General insurance industry was nationalized in 1972 and 107 insurers were grouped and amalgamated into four Companies - National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd.

Jagendra Kumar
Has Trust In Insurance Companies Reached A Peak Under Irdai's Leadership?

The GIC was incorporated in the year 1972 and the other four companies became its subsidiaries. In November 2000, GIC was notified as the Indian Reinsurer, and its supervisory role over its subsidiaries was brought to an end. From 21 March 2003, GIC's role as a holding company of its subsidiaries also came to an end and the ownership of the subsidiaries was transferred to the Government of India. Today, out of 29 non-life insurance companies, there are six public sector insurers, which include two specialised insurers namely Agriculture Insurance Company Ltd for Crop Insurance and Export Credit Guarantee Corporation of India for Credit Insurance.

Moreover, there are 6 private sector insurers are registered to underwrite policies exclusively in Health, Personal Accident and Travel insurance segments. They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance Company Ltd, Religare Health Insurance Company Ltd and Cigna TTK Health Insurance and Aditya Birla Health Insurance Company Ltd. In the last financial year, the general insurance industry had seen a record growth of around 32%, largely due to the success of crop insurance.

The first quarter of FY 2017-18 has been good for the general insurance industry. The Indian general insurance industry is optimistic that it can sustain its high growth momentum for the rest of this financial year ending March 2018 (FY2018), after posting a 21.95% growth in gross direct premium underwritten in the April-June quarter. The nonlife sector reported gross direct premium of INR333 billion (US$5.2 billion) in the first three months of FY2018 compared with INR273 billion for the corresponding quarter last year.

This story is from the January 2018 edition of Life Insurance Today.

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This story is from the January 2018 edition of Life Insurance Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.