The performance metrics of the non-life insurers at the end of the third quarter of 2008-09 shows that their performance has significantly dropped in all the portfolios. Detariffication coupled with economic downturn and worsening stock market conditions has put insurers under a grave threat of breaking even in 2008-09. The article urges the insurers to make plans to stem the worsening tide.

The Insurance Regulatory and Development Authority (IRDA) in its March 2009 issue has published the portfolio-wise shifts in the premium numbers on a comparative basis for each non-life insurer. It would be interesting for the readers to know what trends these indicate to conclude broadly, how the market is shifting due to the domestic and global pressures.The third quarter premium grew only by Rs. 400 cr against an average of Rs. 850 cr for each of the two previous quarters. The market has evidently slowed down in a big way due to international and domestic financial meltdown.

The PSU insurers who had grown by Rs. 630 cr as on September 2008 grew by Rs. 300 cr in the third quarter against Rs. 100 cr by the private players. The private players' defensive performance is indeed a big surprise. Except in motor, liability and Personal Accident (PA) portfolios, they are adopting defensive measures. Perhaps reinsurance is more difficult to get to trade on the capital of reinsurers. The GIC, their principal reinsurer might be tightening the screws on them after a bad year for the GIC itself.

Insurance Chronicle Magazine, Non-life Insurance Market, Performance Metrics, Insurance Regulatory and Development Authority, IRDA, Personal Accident portfolios, Non-life Insurance Industry, Professional Integrity, Financial Integrity, Claims Management, PSU Insurers, Health Sectors.