GENERAL January 2019
General insurers favour to increase FDI limit to 74% :
General insurers are in complete support of raising foreign direct investment (FDI) limit in the sector to 74%. Recently, the representative body of general insurance, health insurance reinsurance companies in India, met to discuss the view of insurance companies in raising the FDI. All the companies agreed on rising FDI limit to at least 74 per cent from the existing 49%.
IRDAI to launch catastrophe insurance schemes as pilot project in some states :
Keeping the rapid growth of natural disasters in the country, the IRDAI is working on launching the government funded catastrophe (cat) cover for poor sections of the society.
After receiving the government approval, the IRDAI will launch the cat cover in select states as a pilot project.
IRDAI seeks data from insurers on exposures to IL & FS, DHFL, India bulls :
The IRDAI has sought information from insurers on their exposure to Infrastructure Leasing & Financial Services (IL & FS). Dewan Housing Finance Corporation (DHFL), Indiabulls, and Anil Dhirbubhai Ambani group companies, informed sources. The regulator perhaps wants to see the strength of the insurance companies. As a lot of insurers including the state owned behemoth Life Insurance Corporation have exposure to IL & FS.
General insurance industry witnesses PAT declines by 90% in FY 19.
The public sector general insurance firms registered a loss of Rs. 3,228 crore in FY 19 as opposed to a PAT of Rs. 2,543 crore in FY 18. Also, the underwriting losses of the general insurance industry increased to Rs. 22,320 crore in FY 19 from Rs. 15,341 crore, a jump of 45%.
While the private general insurers reported a 38% jump in their under-writing losses to Rs. 2,890 croe, the public sector general insurers underwriting losses increased 47% to Rs 18,533 crore.