IRDAI asks insurers to make provisions for IL & FS exposure :

Insurance companies will have to make provisions for their exposure to the crippled infra lender IL & FS, industry regulator IRDAI said.

The IL & FS group with a debt of over Rs. 94,000 crore, has been defaulting o its financial obligations since August and has also borrowed from insurance companies, even though the exact exposure of the industry is not immediately known.

Exposure to IL & FS cannot be written off, they will have to make provisions, IRDAI Chief Subhash Chandra Khuntia told.

Bajaj Allianz launces M-care to cover vector borne diseases :

Bajaj Allianz General Insurance has launched M Care, a health insurance product that offers protection against seven common mosquito borne diseases namely dengue, malaria, chikunguniya, Kala azar, Japanese encephalitis, filariasis and zika virus.

Health claims in instalments soon : IRDA

The policyholders will soon have the option to receive health and accident insurance claims in instalments rather than a one–time lump sum payment.

According to the recommendations of a working group set up by the IRDAI, insurance companies could be asked to look into the feasibility of settling personal accident and benefit-based health insurance claims in instalments.

Allowing the payment of claim proceeds in instalments may be of great help to meet the medium to long–terrn medical needs of customers, the working group noted in its report, adding it would also help to provide a secure and regular income over a defined period of time, especially when the beneficiary is not well versed in financial investments.

However, the committee, led by IRDAI Executive Director (Health) Suresh Mathur, has said installment-based payouts should be allowed only for large claims, of say Rs. 5 lakh or more. The claims can be given in either monthly, quarterly, biannual or annual instalments, as opted by the policyholder. But the claim payment period can be capped at up to five years.

The recommendations have also stressed that the settlement of personal health insurance claims in instalments shall not be the default option. Only the policyholder and not the insurance company can exercise the option at the time of policy purchase.

Extreme storms, wildfires and droughts cause heavy nat cat losses in 2018. Munich Re :

Munich Re released a report of major losses incurred in 2018. Here is an over view of the losses incurred in 2018.

At US$ 80 bn, insured losses were substantially above the inflation–adjusted average for the last 30 years (US$ 41 bn), but below last year’s record figures (US$ 140 bn).

Regrettably, some 10,400 people lost their lives in 2018 as a result of natural catastrophes.

The deadliest disaster of 2018 was a seven-meter tsunami that took the Indonesian city of Palu by surprise on 28th September following an earthquake nearby. Thousands of buildings were destroyed and some 2,100 people were killed. A further tsunami hit coastal regions of Sumatra and Java – islands of Indonesia on the evening of 22 December. The metre high tidal wave is thought to have been caused by an underwater landslide triggered by an eruption of the Anak Krakatau volcano. Since existing tsunami early–warning systems only respond to earthquakes, the metre high wave caught inhabitants unawares. At least 400 people died.

The most expensive natural catastrophes occurred in the US. The costliest events were “Camp Fire”, a wildfire in northern California with overall losses of US$ 16.5 bn and insured losses of US$ 12.5 bn, and Hurricane Michael (overall losses of US$ 16 bn, and insured losses of US$ 10 bn).