Page 7 - Insurance Times October 2023

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Agri Insurer Kshema Two-thirds of global car third year in a row, as floods, hail and
wildfires linked to climate change be-
looks to double its pre- sales likely to be electric come more frequent.

mium by this fiscal end by 2030 Munich Re has put the total global in-
Kshema General Insurance is looking Spurred by falling battery prices, elec- sured costs of natural-catastrophe
to double its premium income from tric vehicles could hit price parity with events in the first half of 2023 at $43
insuring farm activities. The company fossil-fuel models in Europe in 2024 and billion, while Swiss Re has pegged it at
aims to double the premium collec- the U.S. market in 2026, and account $50 billion, according to a report by
tions to 1,000 crore by end of this for two thirds of global car sales by Bloomberg Intelligence.
financial year, insuring more than a 2030, according to new research. More than two-thirds of the insured
hundred different crops, from 400 A report by the Rocky Mountain Insti- losses were as a result of severe thun-
crore premium income earned so far. tute (RMI) predicts battery costs should derstorms in the US.
Kshema General Insurance became halve this decade, from $151 per kilo-
the first insurer this year to receive watt hour (kWh) in 2022 to between PSU general insurers'
a license from IRDAI after a gap of $60 and $90 per kWh, making EVs "for share of premium below a
five years. the first time as cheap to buy as petrol
cars in every market by 2030 as well third of industry
Kshema has bid for kharif crops un-
der the Pradhan Mantri Fasal Bima as cheaper to run." For the first time, PSU General Insur-
Yojana along with other insurers in- Batteries are expensive and account ers account for less than a third of the
cluding ICICI Lombard, Cholaman- for around 40% of an EV's price tag, a industry premium at 32.5 per cent, as
dalam and Tata AIG General Insur- cost that has so far made them larger private non-life insurers have
ance. Of the over 170 crops, the unaffordable for many consumers. consolidated their position in the first
company has shortlisted about 100, But those prices are steadily coming five months of the current fiscal, ac-
including fruits, vegetables, and down as carmakers invest in new bat- cording to the General Insurance Coun-
spices that are not covered under tery chemistries, materials and soft- cil data.
the government insurance scheme ware to make more efficient EVs, RMI Public sector insurers saw their pre-
to also focus on. senior principal Kingsmill Bond told. mium income fall by 1 per cent to Rs.
The company began operation on 34,203 crore during the first five
May 5, starting with 125 crore, Claims from natural disas- months of the current fiscal.
backed by Ramachandra Prasad As a result, their market share plunged
Nalam, Natraj Nukala and Krishna ters set to top $100 billion to less than a third at 32.5 per cent
Burugopall Vyasa. The founders aim for a third year from 33.4 per cent, while premium
to break even in five years and will Claims for weather-related incidents income slipped from Rs. 37,100 crore
put in another 100 crore capital. are set to exceed $100 billion for the to Rs. 34,203 crore.

The Insurance Times October 2023 7