Page 9 - Insurance Times June 2023

management systems - to improve
India plans to host first global insurance summit to
their profits and solvency ratio, a se-
nior finance ministry official told. attract investment
India plans to host the first state-sponsored global insurance summit later
ICICI Lombard net income this year to flag challenges facing the industry, turn the global spotlight on
Indian insurers and attract investments, an official aware of the matter said,
jumps 40%
at a time much of the developed world is bracing for an economic down-
ICICI Lombard said its net income
turn.
jumped almost 40 per cent to Rs 437
The department of financial services, along with insurance sector associa-
crore for the March quarter, boosted
tions and insurance companies, are working on the roadmap for organizing
by the base effect in the year-ago pe-
this conference that is slated to be the world's biggest, the official cited
riod when it took a heavy hit from the
above said on condition of anonymity.
pandemic-related claims.
The event will bring together leaders and top executives from top insurers,
Premium income just inched up 6.7 per
reinsurers, broking firms, actuarial organizations and regulators on one plat-
cent in the reporting quarter to Rs
form.
4,977 crore, the private sector general
insurer said. The event would coincide with India's ongoing G-20 presidency, and lever-
age the global focus on India. It may be organized closer to the heads of
For the full fiscal, the ICICI Bank group
government meeting under G-20 sometime in September, though the ex-
company's net income grew 36 per
act time and venue are still being worked out.
cent year-on-year to Rs 1,729 crore on
a gross written premium of Rs 21,025 "We hope to bring in close to a dozen global heads on companies involved
crore, the chief financial officer and in insurance operations. Efforts are also on to bring regulators from the de-
chief risk officer Gopal Balachandran veloped world too along with government representatives and key
told during an earnings call. policymakers," the official cited above said.

He also said the company grew mar-
ginally higher than the industry, which derwriting breakeven in next three adverse weather events, the war in
clipped a tad lower at 16.4 per cent years time," T Babu Paul, General Eastern Europe, and macroeconomic
for the full fiscal. Manager, NIC, told. shocks. It was widely expected that the
Indian market would also see some
National Insurance Co hardening of rates, but the quantum
Steep rise in reinsurance
of the hike was anybody's guess.
hopes to break even in 3
rates seen in renewals
Experts had estimated that since India
years Most Indian insurers have seen a steep
did not suffer any major natural catas-
National Insurance Company Ltd which rise in reinsurance rates this renewal trophe, the extent of the rise in rein-
has been making continuous losses for season, with rates hardening over 30 surance rates in the Indian market
the past three years, is looking to re- percent or more. would not be as severe as seen in some
duce its underwriting losses progres-
Primary insurers transfer a portion of international markets. That was not
sively in the next three years to achieve
their risk portfolios to reinsurers by the case.
break even. The general insurance
paying a certain premium to reduce
"Reinsurance renewals this time have
company has been exiting loss-making
the likelihood of paying a large obliga-
been one of the toughest. The rates
products and repricing the health in-
tion in the form of a claim.
moved up in the range of 30-50 per
surance portfolio to bring down under-
Globally, the renewal of reinsurance cent, in spite of the Indian market per-
writing losses.
contracts between primary insurers forming decently. Plus, the attach-
NIC posted net losses to the tune of Rs.
and reinsurers takes place in January. ments have been increased. If this
1,679 crore in 2021-22. Figures for
Reports had suggested that reinsur- trend continues, the underwriting risk
2022-23 are not readily available.
ance rates touched multi-year highs will have to undergo change because
"The company has plans to clock un- this renewal season in the wake of it is not possible to pass on a 30-40 per
The Insurance Times June 2023 9