Insurance gets dearer through H1: Study

Insurance premiums in India continued to rise in H1 2010 even as a stabilising or decreasing...

Insurance premiums in India continued to rise in H1 2010 even as a stabilising or decreasing trend has been seen in other nations in Europe,Africa and the Middle-East,a study by the brokerage firm Marsh,has revealed.

In India,some segments like employees compensation have witnessed an over 40 per cent rise sequentially due to changes in statutory norms which have raised minimum sum insured for death,permanent disability and funeral expenses,the report said.

Rates for property insurance have gone up 10 per cent while a mixed trend has been observed in vehicle insurance,the brokerage said.

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Premiums for fleet insurance have gone up due to higher claims while an increased competition in other motor lines has resulted in an average discounting of 10-20 per cent,it said.

Some segments like professional indemnity,healthcare,environmental and casualty (general) have seen rates falling or being unchanged,the Marsh report for Europe,Middle-East and Asia,said.

“There are strong signs of rates stabilising or even reducing across certain sectors. In the absence of any significant losses,we expect that the most competitive lines of business in India will remain unchanged for the remainder of 2010,” Marsh’s Country Head in India and Chief Executive Officer Sanjay Kedia said.

In other nations,an increased competition within insurance players and added capacity generated resulting out of it is creating a stabilising effect,the report said.