Page 8 - Insurance Times March 2023

New India Assurance PSU insurers to digitize Top insurers compete to

PAT up 27% in 9-month motor policy settlement to cover Air India fleet
Top insurance companies, are compet-
period stay in race
ing to provide insurance cover to Tata
New India Assurance posted a net State-run general insurers Oriental In- Group-owned Air India's fleet for the
profit of Rs. 900 crore for the nine-
surance, National Insurance, New In- next financial year (2023-24). This in-
month period ended December, up
dia Assurance, and United India Insur- cludes insurance cover for new planes
27.2 per cent on year even as
ance, are completely digitizing their that would be delivered in the next fi-
gross premium growth was muted
motor insurance policies to prevent nancial year.
at 1.9 per cent. The profit before
ceding market share to private sector Insurance executives say a large num-
tax increased by 33 per cent to Rs.
rivals. ber of multinational companies based
1,086 crore.
in Europe have met Air India execu-
According to people aware of the de-
For the reporting quarter, the in-
tives in London to discuss the contours
surer posted profit after tax of Rs. velopment, these general insurers,
of the insurance cover.
749 crore, up 52.4 per cent on who are part of General Insurance
Last year, insurance companies jointly
year. "The muted growth in pre- Public Sector Association (GIPSA), are
provided $12 billion insurance cover to
mium was due to the same period empanelling digital service providers
Air India (for its 117 aircraft) and Air
during the previous year recording
(DSPs) as their agents to process and
India Express (for its 24 aircraft). The
significant revenues from the crop
manage motor insurance policies, with
airline had paid an insurance premium
line of business and some govern-
claims up to Rs. 50,000.
ment business, which were not of about Rs. 300 crore.
The four insurers are embracing a new
there this year as also shedding
certain loss-making businesses," digital approach to boost an essential
5 PSU insurers have Rs.
said Chairperson and MD Neerja part of their insurance operations and
347-cr exposure to Adani
Kapur. free up time to concentrate on more
lucrative policies. With their market
Property line of business per- firms
formed well, and the health line of share in the motor insurance sector Five state-run general insurance com-
business showed improved results hovering around 34% and on the de- panies have a total exposure of Rs
during the period. Adverse devel- cline, the digital drive is expected to 347.64 crore, or 0.14 per cent of their
opment of claims in crop line of help reinvigorate this segment. Over total assets under management
business and severe competition in the past decade, the four insurers saw (AUM), in Adani group of companies,
motor line of business adversely the Finance Ministry said.
their motor insurance business lose
impacted the results during the
ground to private sector rivals who had In a written reply to a question by Con-
period, she added.
less than half the market in 2009. gress' Manish Tewari, Minister of State
The Insurance Times March 2023 7