Property, fire insurance premium set to rise from next year

After hardening of premium under group health insurance three months ago, property and fire segments are also set to witness increase in premium rates from the next calendar year.
"We do see the hardening of property and fire insurance segments beginning from the new calendar year. However, I can't tell you to what extent the premiums are likely to go up into the sector as it will vary from company to company," New India Assurance Chairman cum Managing Director, G Srinivasan told reporters here today.
He was speaking on the occasion of the launch of New India Top-up Mediclaim.
"Market has already hardened in the group health insurance sector for past 2-3 months, so as to bring it in line with the burning cost of the insurers. However, it will have positive impact on the bottomline of his company. Premium hardening has taken place in group health insurance after 3-4 years. Premium rates are slightly catching up with the underwriting," he said.

According to him, New India Assurance has already underwritten premium to the tune of Rs 2,300 crore under the health insurance segment in the first half of the current fiscal, ending September 30 and it was looking at crossing the mark of Rs 4000 crore by the end of the fiscal.
Talking about the health insurance loss ratio in his company, Srinivasan said that it was at 89 per cent during the first half of the current fiscal, as compared to the mark of 97 per cent during the corresponding period last fiscal.
"It is coming down as more and more people are coming under the health insurance coverage in the country," he said.