Page 5 - Insurance Times March 2021

General Insurance

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India accounts for 11% of on better-off households. It is much on the insurance industry, the severity
higher on women who have to take of the impact is gradually reducing and
global deaths in road
care of the burden of caregiving. It is the same is reflected in the results of
accidents: World Bank much higher on those who rely on foot the industry. GIC Re''s financials for the
India, which has 1% of the world's and also in the informal sector," he nine months ended 31st December
vehicles, accounts for 10 per cent of all said. 2020 have shown indications of
road crash victims, the latest World However, according to Schafer, the positivity and signals turnaround in the
Bank report on road safety said. good thing is that India was doing quite near future," it added.
Hartwig Schafer, World Bank's Vice a bit on road safety. The net profit for the nine months
President for South Asia, said the ended December stood at Rs 660
Indian government in recent years has GIC Re reports Q3 net crore. However, a loss of Rs 1,556.50
taken significant steps to address the crore was recorded for the same
issues related to road safety. profit of Rs. 987 crore period of the previous fiscal.
GIC Re reported a net profit of Rs.
"For India, it's one per cent of the Investment income for the nine months
world's vehicles and 10 per cent of the 987.42 crore for the third quarter has increased significantly. GIC Re''s
crash victims. This is something where, ended December 2020. international business has shown a
in particular in India, we have to pay There was a loss of Rs. 1,069.64 crore growth rate of 23 per cent.
attention," Schafer told on the in the year-ago period.Sequentially, it It grew to Rs. 6,534.65 crore for the
occasion of the release of the report had posted a net profit of Rs 230.06 first nine months this fiscal from Rs
on road safety in New Delhi. crore in the second quarter ended 5,216.00 crore in the year-ago period.

While the attention in the last year has September 2020. "Our underwriting performance is
shifted due to COVID-19, there is an Gross premium during the October- expected to show better trends going
interesting link between road safety December quarter increased to Rs. forward and this will result in further
and pandemic right now, he noted. 11,668.51 crore, from Rs. 11,539.96 strengthening of GIC Re''s position,"
"Unfortunately, the road crashes have crore in the same period of 2019-20, the insurer said.
not been going down and any time 10 GIC Re said in a regulatory filing. Solvency ratio is increased to 1.53 at
per cent of the capacity in hospitals is Global scenario for the insurance the end of the third quarter FY21 from
being used for the treatment crash industry for the FY21 has shown weak 1.51 a year ago. It is a metric to
victims," he said. trends due to COVID-19 situation for measure how much a company has in
Schafer said that road crashes actually most classes while benefitting a few. As assets against how much it owes.
hit the poorest and the most vulnerable compared to Q2, there is a growth in The insurer said its total assets stood
segments of the populations. business volume during Q3 FY20-21, at Rs. 1.34 lakh crore at the end of
the general insurer said.
"The financial impact of the crash is December 2020, as compared to Rs.
much more on poorer households than "Although COVID-19 influence remains 1.29 lakh crore by a year ago.

The Insurance Times, March 2021 5