Weekly Insurance Round-up Tuesday, March 15, 2022
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We're back with the next edition of Beshak's Weekly News Round-up - an analysis of all Insurance News & Updates, straight from our research desk! Don't forget to share your feedback with us, and give us a thumbs up if you find this helpful!
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✴️ Motor third-party premium rates to be revised after 2 years ✌️
✴️ 22% increase in life insurer’s new business premium 💸
✴️ Indian non-life industry grows by ₹814 Crore in February 📈
✴️ Aditya Birla Sun Life Insurance to partner with Bharat Co-operative Bank 🤝
- In consultation with IRDAI, the Ministry of Road Transport and Highways released a draft notification for revising third-party motor insurance premiums.
- With this proposed revision, the third-party premiums for motor insurance will be increased after two years. The premiums were not increased in FY21 and FY22 because of COVID-19.
- As per the revised rates, the premiums will increase as follows:
|Vehicle type||Increase in rate|
|Private cars - 1000 CC||₹2,094|
|Private cars - 1000 to 1500 CC||₹3,416|
|Private cars - above 1500 CC||₹7,897|
|Two-wheelers - over 150 CC not exceeding 350 CC||₹1,366|
|Two-wheelers - above 350 CC||₹2,804|
- The premium for public goods carrying commercial vehicles will range from ₹16,049 to ₹44,242 depending on the gross vehicle weight, whereas the premium for private vehicles will range from ₹8,510 to ₹25,038.
- The premium for electric private cars will range from ₹1,780 to ₹6,712 depending on the capacity expressed in kilowatts and for two-wheeler electric vehicles, the premium will range from ₹457 to ₹2,383.
- As per the draft notification, a 15% discount has also been proposed for electric private cars, electric two-wheelers, electric goods carrying commercial vehicles, and electric passenger carrying vehicles.
- The industry experts are not very happy with the proposed draft. After not increasing the premiums for 2 years, they were expecting a decent hike from the regulator’s side.
Source: Business Standard
- Life insurer’s new business premium for February 2022 has increased by 22%, where the new business premium in February 2022 was ₹27465.13 Cr. as compared to ₹22425.21 Cr. in February 2022.
- The premium growth of the life insurers was mostly driven by LIC as it saw a growth of 35%. The new business premium of LIC was ₹17489.34 Cr. for February 2022 and ₹12920.57 Cr. for February 2021.
- Private life insurers also saw a growth of 5%, the premium for February 2022 increased to ₹9975.79 Cr. from ₹9504.64 Cr for February 2022.
- The cumulative new business premium for all life insurers up to February 2022 was ₹254654.02 Cr. which was more than February 2021's ₹234861.30 Cr.
Source: Business Standard | New Business Statement-IRDAI
- As per IRDAI’s monthly business figures- non-life report, non-life insurers have grown by ₹814 Cr in February 2022.
- The gross direct premium underwritten for February 2022 was ₹16,560.99 Cr. which was 5% more than ₹15,746.99 Cr. of February 2021.
- General insurers gross direct premium underwritten for February 2022 was ₹14,173.59 Cr. which was 7.7% more than ₹13,158.86 Cr. of February 2021.
- Standalone private health insurers also saw a growth of 30.24% where the premium underwritten increased to ₹1,831.63 Cr in February 2022 from ₹1,406.32 Cr. in February 2021.
- Two specialised PSU Insurers - Agricultural Insurance Company of India Limited and ECGC Limited saw a decline in their growth by 52.97% where the gross premium underwritten for February 2022 was ₹555.77 Cr and for February 2021 was ₹1,181.80 Cr.
Source: The Free Press Journal
- On 9th February 2022, Aditya Birla Sunlife insurance (ABSLI) announced a partnership with Bharat Co-operative Bank (Mumbai) Ltd.
- With this partnership, ABSLI aims to directly reach out to the Bharat Co-operative Bank's 5 lakh plus customers via their 103 branches (Mumbai) and provide them with relevant life insurance solutions to meet their life insurance and investment needs.
- ABSLI is also looking to expand its footprint across Maharashtra, Karnataka, and Gujrat through Bharat Co-operative Bank (Mumbai) Ltd’s widely spread network.
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