Page 9 - The Insurance Times October 2024

deaths caused by road traffic accidents have been profitable since inception. Narayanan mentioned the possibility
rose to 45.1% of all unintentional in- The recent acquisition of private equity of reduced capacity for such coverage,
jury-related fatalities, underscoring the major TPG's stake in these companies as SRCC risk is increasingly difficult to
urgent need for intervention. by Sanlam, a South African financial underwrite in unstable territories.
Titled "National Strategy for Prevention services group, has bolstered Shriram's
of Unintentional Injury," the report, re- insurance holdings. While the group AP Flood Insurance Claims
leased at the World Safety Conference, does not currently plan to raise funds May Exceed 2015 Chennai
highlighted that the number of deaths via overseas bonds, it may reconsider
from unintentional injuries increased if the U.S. Federal Reserve reduces in- Flood Levels
from 420,000 in 2016 to 430,000 in terest rates. General insurers are preparing for sub-
2022. This figure is more than double the stantial losses as flood-related claims
number of deaths caused by intentional Reinsurance Burden May surge in Andhra Pradesh. With approxi-
harm, including homicide, suicide, and Rise Amid Bangladesh Un- mately 1.51 lakh vehicles, including
domestic violence. cars, buses, and two-wheelers, re-
rest ported as either fully or partially dam-
Government Plans to Sell Insurance companies may face higher aged, the insurance industry is bracing
reinsurance inward placement rates as for a wave of claims. These figures
6.78% Stake in GIC Re a result of the escalating unrest in were provided by the State Transport
The government has announced plans Bangladesh. A rise in strikes, riots, and Department, which compiled data on
to divest a 6.78% stake in the General civil commotion (SRCC) claims is antici- affected vehicles in Vijayawada and
Insurance Corporation (GIC Re) pated due to political instability in the surrounding areas in NTR district.
through an offer for sale (OFS) at a country. The floods were exacerbated by a
floor price of Rs. 395 per share. This SRCC coverage, a form of protection record water discharge from the
sale is expected to raise approximately against political violence, is expected Prakasam Barrage, totaling 11.45 lakh
Rs. 4,701 crore. The OFS consists of to see rate hikes. GIC Re's Managing cusecs. This is the highest discharge
5.95 crore shares, with an additional
Director, Ramaswamy Narayanan, since 1903, leading to severe inunda-
green shoe option for the same num- stated that although SRCC is generally tion in several districts. The IRDAI has
ber of shares.
excluded from most treaties, already issued directives to expedite
Up to 3.39% of the stake will be avail- Bangladesh remains a key territory. claims processing to help affected in-
able for non-retail investors, with re- Despite the volatility, only one con- dividuals and businesses. Industry esti-
tail investors able to participate at a tract includes SRCC coverage, and GIC mates suggest that claims from this
later stage. Shares are being offered Re does not foresee significant losses year's floods may rival those from the
at a 6.13% discount from GIC Re's re- from Bangladesh, given the self-in- 2015 Chennai floods, which amounted
cent closing price of Rs. 420.80 on the sured nature of government buildings. to Rs. 4,800 crore.
National Stock Exchange.

Shriram Group to Priori- Nitin Gadkari Stresses the Need for Road User Be-

tize Listing of General In- havior Reform
surance Arm Union Minister for Road Transport Nitin Gadkari has expressed his frustra-
tion with the widespread violation of traffic rules, despite the significant
Shriram Group is planning to list its increase in fines. Speaking at the World Safety Conference, he questioned
general insurance subsidiary, Shriram the effectiveness of further raising penalties to deter traffic violations and
General Insurance, ahead of its life in- emphasized the need for a shift in road user behavior.
surance company, according to Umesh
Revankar, Executive Vice Chairman of "We are using technology (ITS) for traffic rule enforcement and have in-
Shriram Finance. Both Shriram Gen- creased fines for violations, but it's not yielding results because people are
eral Insurance and Shriram Life Insur- not taking them seriously. How much more can we increase fines?" said
ance are expected to go public within Gadkari. He highlighted that changing human behavior, with the involve-
the next two years as their businesses ment of social and educational organizations, is essential to addressing the
continue to expand. issue. The Motor Vehicle Act was amended in 2019 to introduce higher fines,
with the expectation that these penalties would serve as a deterrent.
Revankar noted that both subsidiaries
8 October 2024 The Insurance Times