Hyderabad, Dec. 30 The insurance sector is set to witness a lower year on year growth of about 17 per cent this fiscal as against a 24-25 per cent it logged in previous financial year, according to Mr J. Hari Narayan, Chairman of Insurance Regulatory and Development Authority (IRDA).
Like most sectors of the economy, the insurance sector too has witnessed pressure. Though in absolute numbers the market has grown compared to last year, its expansion would be lower this fiscal, he said.
Addressing a press conference after the launch of corporate social responsibility (CSR) initiative of SBI Life here on Tuesday, the IRDA chief said that as of October 2008, for which numbers are available, the market recorded about Rs 39,000-crore worth new business. However, traditionally, the fourth quarter of any fiscal will witness more business generation.
Commenting on the insurance sector players, Mr Hari Narayan said “The strength of the companies has not been affected. We have a conservative and rigid policy on solvency that is 150 per cent. It is mandatory that companies have assets worth one and a half times the liability. All companies more than meet this criterion.”
Health cover
Referring to the health insurance-related issues, Mr Hari Narayan said IRDA was in the process of generating data on health insurance sector and placing it on the Web site to serve as reference point for general public. “We will be able to do this within six months,” he said.
The domestic healthcare industry is now estimated at about Rs 200,000 crore and the insurance industry contribution in this is barely 3 per cent at about Rs 6,000 crore.
On the issue relating to some corporate hospitals jacking up prices for insurance claims, Mr Hari Narayan said he had received some complaints on the issue. He said a health sector regulator for an industry as large as this would be very appropriate. However, it was for the Government to decide on this issue.
