ICICI Lombard expects to cross the Rs 5,000-crore mark in premium collection this fiscal on the back of good growth in health and motor insurance segments,a top executive of the leading private general insurer said.
“We are hopeful of crossing Rs 5,000 crore in gross written premium collection (GWP) in the current fiscal and expect to clock a 20-25 per cent growth in overall business for the next three to four years,” Executive Director of ICICI Lombard Neelesh Garg told PTI.
The company had a GWP of Rs 4,252 crore during the last financial year.
Garg said the growth in premium collection was mainly on account of sound performance across all segments,especially health and motor insurance.
While health insurance constitutes more than 25 per cent of the total portfolio,motor segment is around 40 per cent of the company’s business.
Garg said it is witnessing over 20 per cent expansion in the health segment and is likely to maintain the momentum.
The company has a loss ratio of less than 100 per cent in group mediclaim policy,which is one of the most loss-making segments of the industry.
Garg said,”There is no pressure as the market is too big in India and penetration is very less. So,there is scope for every player in the market place.”
He said the firm was witnessing a “sound growth rate” in the motor insurance segment as well.
“Though there has been some decline in auto sales due to the high interest rate regime,it has not impacted our portfolio yet. We expect better times ahead as interest rate environment becomes more benign.”
Insurance premium should be increased in motor vehicle segment to accommodate the cost structure,he said.
Garg added that insurance regulator IRDA’s decision to replace third party motor pool with declined pool system would help in profitability of the industry.
IRDA’s decision will free the pricing model and insurers would be able to price vehicles based on claims.
About other categories,he said travel and home insurance segments are still evolving and would take some time to become popular.
One product each from ICICI Lombard in the motor and health insurance segments are pending for approval from the regulator,Garg added.