Marine cargo premium income growth falls to 3%

Low economic activity and unwillingness by insurers to underwrite loss-making portfolios led to a fall in business for segments such as marine cargo and health.

According to the latest data by the Insurance Regulatory and Development Authority (Irda) premium income from marine and cargo fell around 3 per cent while income from health went up by 2.65 per cent during the first quarter of the current financial year.

The industry’s growth was dominated primarily by health and motor, with income from motor gaining 5.47 per cent during April-June. Motor accounted for 39 per cent of the overall collection. Motor Own Damage went up by 5 per cent and was 25 per cent of the total collection.

 

Income from health accounted for 21 per cent of the total premium collected by the industry during the period.

At the same time income from marine cargo fell due to a decline in the number of shipments as well as the value of consignments. Insurers attributed the fall to low export and domestic activities but are hopeful of an improvement in the portfolio.

Of late, insurance companies have been focusing on prudent underwriting practices. During the first quarter of 2009-10, income from fire went up by 7.65 per cent. This segment had recorded a 3 per cent drop during the last financial year. The discount on fire is still hovering around 80 per cent.

Income from aviation went up by 32 per cent mainly because of increase in premium on aviation.