SME Times is powered by   
Search News
Just in:   • Petrol-diesel price gap decrease to hasten shift to petrol PVs: ICRA  • EU predicts 'deeper recession' in 2020 than expected  • Banks' cyber risks rise as Covid spurs digital trends: Moody's  • US dollar gains amid coronavirus worries  • US stocks drop amid coronavirus concerns 
Last updated: 30 Jun, 2020  

Insurance.Thmb.jpg Non-life insurance sector to log negative growth in FY21

   Top Stories
» Liquidity to MSMEs rises as ECLGS loans cross 1.14 lakh cr
» NITI CEO sees green shoots in economy
» India up in real estate transparency index
» Gadkari chairs the Group on Infrastructure meeting
» 70% startups hit hard by Covid-19: Survey
SME Times News Bureau | 30 Jun, 2020
The non-life insurance industry is expected to log negative growth this financial year (FY21) due to Covid-19 pandemic, according to a top official of Cholamandalam MS General Insurance Company, here on Tuesday.

Announcing retirement from the Mugugappa Group insurance firm, S.S. Gopalarathnam said V. Suryanarayanan, President & COO, would take over as the Managing Director on July 1.

The company is a joint venture between the Rs 381 billion turnover Murugappa Group and Mitsui Sumitomo Insurance Group, Japan.

Gopalarathnam said the non-life insurance industry would suffer degrowth in the first quarter of FY21. The second quarter business figures might be flat compared with Q2FY20. The industry could start logging growth from the third quarter, but overall there might be zero growth or two per cent negative growth for FY21, he added.

For Cholamandalam MS General, the business degrowth during Q1FY21 was about 14 per cent, he said.

According to him, the rural demand for two-wheelers will give a necessary push to the automobile insurance business. An increase in demand for two-wheelers has resulted in better business for the non-life insurers.

The Insurance Regulatory and Development Authority of India too recently tweaked the norms for long-term policies, resulting in lower premium outgo for new vehicle buyers.

On crop insurance, he said the business was expected to go down to about Rs 12,000 crore this year from Rs 27,000 earlier due to change in the scheme.

Gopalarathnam ruled out any fresh capital infusion in the current financial year.
Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 08 Jul, 2020
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» Pain points for MSMEs(3)
» Starting an import export business: Basic guide for beginners(2)
» UP govt to change lives of migrants: MSME Principal Secy(2)
» China's forex reserves reach USD 2.85 trillion(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter