annual report 2008-09 - IRDA

ANNUAL REPORT 2008-09
On the other hand, all private insurers have reported
increases in their investment income and their total
investment income has gone up to Rs.1091.20 crore
during 2008-09 from Rs.742.05 crore in 2007-08; an
increase of 47.05 per cent. (Statement 31 & 32)
Incurred Claims Ratio
The net incurred claims of the non-life insurers stood
at Rs.19702.57 crore in 2008-09 (2007-08:
Rs.16371.12 crore), registering a slower growth of
20.34 per cent, as against 25.41 per cent in 2007-08.
However, the industry level incurred claims ratio rose
marginally in 2008-09, as the net incurred claims grew
at a higher rate than the rate of growth in net premium.
The incurred claims of public and private sector
insurers rose by 12.48 per cent and 42.82 per cent
respectively in 2008-09. (Statement 33, 34)
TABLE 27
NET INCURRED CLAIMS OF NON-LIFE
INSURERS
(Rs. Crore)
Insurer 2007-08 2008-09
Public Sector 12124.81 13637.79
(15.05) (12.48)
Private Sector 4246.31 6064.78
(69.66) (42.82)
Total 16371.12 19702.57
(25.41) (20.34)
Note: Figure in brackets indicates the growth rate (in per cent).
The incurred claims ratio (net incurred claims to net
premium) of the general insurance industry increased
marginally to 86.30 per cent in 2008-09 from 84.88
per cent in 2007-08. The increase was reflected in
both public and private insurers. Segment wise, the
ratio surged for Fire and Marine but declined for Motor
and Health business. The health segment continued
to improve, in terms of consistent fall in the ratio, which
stood at 105.95 per cent in 2008-09, as against 107.00
per cent in 2007-08 and 141.02 per cent in 2006-07.
However, for the public insurers, this ratio increased
to 116.60 per cent from 112.36 per cent in 2007-08.
On the other hand, for private insurers this ratio
increased to 76.84 per cent in 2008-09 from 72.21
per cent in 2007-08. This was attributed to the rise in
the incurred claims ratio for all segments, except for
health insurance. The ratio for health declined to 85.33
per cent in 2008-09 (2007-08: 94.84 per cent). For
the private insurers, the Fire segment showed a higher
rise to 74.97 per cent in 2008-09 from 50.69 per cent
in 2007-08.
In the case of public general insurers, the incurred
claims ratio deteriorated in all segments, except Motor.
Motor, being the largest segment, showed
improvement and stood at 98.90 per cent in 2008-09
(2007-08: 104.76 per cent).
TABLE 28
INCURRED CLAIMS RATIO
(In Per cent)
Private Sector Public Sector Total
Segment 2007-08 2008-09 2007-08 2008-09 2007-08 2008-09
Fire 72.28 75.86 50.69 74.97 68.69 75.72
Marine 82.68 101.05 100.32 109.02 86.68 102.90
Motor 104.76 98.90 71.95 75.64 92.31 88.84
Health 112.36 116.60 94.84 85.33 107.00 105.95
Others 54.13 52.69 46.03 59.11 52.51 54.15
Total 90.43 91.30 72.23 76.84 84.88 86.30
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