Page 8 - Insurance Times February 2024

Motor covers to drive market share growth for Tata died or were injured, third-party liabil-
ity (TPL) and baggage loss.
AIG
Tata AIG General Insurance aims to double its market share to achieve a No conviction in bulk of
leadership position in the non-life industry, which is expected to grow four
times by 2030 to Rs 10 lakh crore, the company's MD & CEO Neelesh Garg hit-and-run cases
said. One of the growth drivers will be an increase in the penetration of The conviction rate, or the share of
motor insurance as the number of uninsured vehicles in the country reduce, completed court trials resulting in con-
Garg said. viction, for hit-and-run cases was 47.9
per cent in 2022, official data shows.
"We have doubled our market share in the last seven years and we expect
to do it again," said Garg. During the first nine months of FY24, Tata AIG The conviction rate has remained be-
has grown nearly 20% to Rs 11,206 crore, according to industry data, which low 50 per cent in two out of the pre-
makes it the fourth-largest private insurer. vious five years. The exceptions are
2020 and 2021, when it was 58.1 per
Garg said that due to the introduction of five-year policies for two-wheel- cent and 51.9 per cent respectively, ac-
ers and three year third-party covers for cars, the number of uninsured ve-
hicles has decreased. "Recently, the department of financial services has cording to data from the National
Crime Records Bureau (NCRB). Other
sent a request to state governments, indicating that since information is
now available, reminders should be sent to vehicle owners to ensure that serious crimes have a lower conviction
their vehicles are covered". rate. The conviction rate for murder in
2022 was 43.8 per cent, while it was
Garg said that this would also improve the underwriting performance of 33.9 per cent for kidnapping and ab-
insurers as the quantity of premium in relation to claims will increase. "We duction.
are on course this year to $100 million of profits. We can fund our own
growth through internal accruals and we have a solvency margin of around Michaung insurance claims
2x," said Garg.
35% less than in 2015
First week of December brought famil-
Indian insurers may have US insurer AIG was the lead insurer on iar scenes of rain, storm, flooding,
a $130 million all-risks policy for the Ja-
to pay Rs. 33 crore for Ja- pan Airlines airplane. While all 379 power outages, and fallen trees. When
pan air crash claim people aboard the Japan Airlines Air- Cyclone Michaung wreaked havoc,
leading to the heaviest rainfall in 47
Indian Insurance companies may have bus A350 escaped after the collision, years in the city, residents of Chennai
five of six crew on the Coast Guard air-
to pay out Rs 33 crore as claims for the drew parallels to the devastating floods
accident involving Japan Airlines (JAL) craft were killed. of 2015.
aircraft and a Japanese Coast Guard As a matter of fact, big commercial in-
However, initial data on insurance
plane recently. Public sector GIC Re surance deals involving factories, claims suggests that the impact this
will be paying around Rs 18 crore while planes and ships are divided among a time may portray a more optimistic
three other PSU general insurers - New number of insurers and reinsurers to scenario.
India Assurance (NIA), Oriental Insur- minimise the financial risk arising from
According to data shared by industry
ance Company (OIC) and National In- a claim.
sources, the proactive response from
surance Company (NIC) - will have to In August 2020, the crash of Air India
shell out Rs 5 crore each to meet their both authorities and the public contrib-
(AI) Express Boeing 737 plane at the uted to a significant reduction in
part of liabilities in the JAL policy, an
Kozhikode airport in Kerala cost global claims, with a 30-35 per cent decrease
insurance sector source said. reinsurers and Indian insurers Rs 660 in motor and non-motor insurance,
While the total claim was reportedly crore ($89 million), the largest claim compared to the 2015 floods. This is
Rs 1,100 crore for the Japan Airlines payout in the Indian aviation market. despite the number of policies issued
airplane which collided with another Of the reinsurers' total claim provision across India by general Insurers (other
plane at Tokyo's Haneda airport on of $89 million, $51 million was for the than standalone health insurers and
January 2, the JAL policy covers dam- hull total loss and $38 million for liabil- specialised insurers) increasing 74 per
age to the hull. ity that might arise for passengers who cent in 2021-22 compared to 2014-15.

8 February 2024 The Insurance Times