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Motor insurance segment expects revival of business in later half of the current year

Last Updated: Sep 15, 2013 | 834 Views
With auto industry expecting to pick up in 2nd half of the current financial year, mainly on account festival seasons during this period, the General Insurance Companies also expects revival of its business. Auto industry segment showed a growth of only 12% in last financial year as compared to 18% during the financial year ending March 2012. The main reason attributable to this reduction is the slowdown in the economy. It has touched a low of 4.4% for the quarter ending June 2013.
Auto insurance segment, which makes upto 45% of the total general insurance, is already bleeding under the losses and experts believe that if the auto sales demand does not pick up the loss ratio in this category will rise in days ahead to come. 
Mr. K Sanath Kumar, General Manager and Whole Time Director of The New India Assurance Company said that their company is optimistic about growth in automobile sector in 2nd half of the current year with many festival season approaching.  This will help the motor segment of general insurance industry to grow. 
According to Mr. Amarnath Ananthanarayan – Chief Executive, Bharti AXA General Insurance, though as of now growth is not visible, industry expects it revival in the later part of the year. 
According to the statistics provided by Society of Indian Automobile Manufacturers, there has been decrease in car sales by around 7.5% in July 2013. However industry has seen improvement in the month of August 2013.

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