Page 9 - Life Insurance Today July - December 2020

positive. Covid-specific health covers like Corona Kavach and Lombard General Insurance is just one of the latest in the
Corona Rakshak contributed significantly as most insurers insurance sector, which has seen quite a few such
sold fair volumes of these products. Consumers have started developments in recent months. ICICI Lombard's deal with
considering health insurance more than before and that has Bharti AXA General Insurance is expected to increase the
given a jump to the health business. market share of the company in the motor insurance
segment. Currently, ICICI Lombard has around 10 per cent
market share in the motor insurance business. After the
merger, it will command 12 per cent market share.

Furthermore, the consolidated entity will have a market
share of 8.7 per cent in the non-life business, making it the
third-largest non-life insurer in the general insurance
business. The first two spots are now held by state-owned
insurers. ICICI Lombard, the largest private-sector general
insurer, has underwritten premiums to the tune of Rs
4,391.29 crore in 2020-21 so far - 2.86 per cent lower than
the Rs 4,520.40 crore in the same period last financial year.
Based on premiums, it has a market share of 7.8 per cent
in the non-life insurance business. The Union Cabinet
decided to halt the merger process of three state-owned
general insurance companies, National Insurance, Oriental
M&A Deals
Insurance and United India Insurance. It approved a fund
Corona is going to the biggest challenge the industry has infusion of Rs 12,450 crore to improve their financial health.
seen so far. The disease has pan-India spread and there is
very real risk of it spreading exponentially. With mergers of Standardization of Insurance Products
public sector banks, many of which own stakes in insurance
companies, divesting stake and consolidations in the India continues to see one of the lowest insurance
insurance space could see more activity. The merger of penetration rates at 3.69 per cent, according to the annual
Bharti AXA's non-life insurance business with that of ICICI report by IRDAI. The penetration for non-life insurance
sector in the country stood at 0.93 per cent in 2017.Before
the abolition of the Tariff Advisory Committee in 2002,
there were certain standardized products in the micro
insurance space. However, after the abolition, the products
went off the shelves due to lack of demand, according to a
senior official in a general insurance firm.

The Insurance Regulator is expected to come out with
norms in the next few months, said a source close to the
development. Standardization would entail affordable
insurance products to help cope with and recover from
common risks while adhering to certain levels of cover,
premium and benefit standards. In the last few years, the
need for such standardization was accentuated by
increasing loss of small houses and commercial
establishments due to natural calamities.

Earlier, IRDAI, in order to propagate micro insurance in
various segments, expanded the categories of entities or

"Never let your mind 2nd guess what you heart already holds the answer too"

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