Public sector general insurer United India Insurance Company is hopeful of achieving 15 per cent growth in its premium income to Rs 6,000 crore this financial year on the back of sound growth from all verticals of the company.
"With tangible improvement in overall economy, we hope to achieve 15 per cent growth in premium income this fiscal," G Srinivasan, CMD of United India Insurance Company said.
United India had posted a net profit of Rs 707 crore in FY10 — a 48 per cent rise over the corresponding period last year. Premium income of the company stood at Rs 5,239 crore during the same period with a underwriting loss of around Rs 900 crore.
Referring to underwriting losses, he said, "Health and motor insurance are two areas where underwriting losses are higher for the company. While no one is making money from the health insurance segment, third-party motor insurance are making losses due to low premium."
Insurance industry in general is facing margin pressure in the health insurance segment due to group medi-claim policies, rising cost of health expenditure and general inflation. Also, the government decision to allow life insurer to sell health insurance products, margins have been further squeezed.
Srinivasan also said the premium for third-party motor insurance claims should be increased to lessen the underwriting losses.