Future Generali India Insurance Company, a joint venture between retail giant Future Group and Italian insurance major Generali, expects to post a 20-25 percent growth this fiscal, said the company’s MD and CEO K. G. Krishnamoorthy Rao. This will be well above the expected general insurance industry growth of about 15 percent this fiscal, he added.
Last year, the company grew at 14 percent even as the sector recorded its slowest growth in several years, at 9 percent. The pickup in the economy and a couple of regulatory changes are expected to usher in faster growth this fiscal Rao said.
This is contingent on auto sector sales reviving since motor insurance premium contributes about 55 percent of the company’s revenue. Last year, Future Generali had recorded a 50 percent jump in profits at Rs.60.9 crore on a gross premium income of Rs.1,480 crore.
Solvency ratios are comfortable and there is no immediate requirement to infuse capital, Rao said. He expressed hope that insurance regulator IRDAI will lift the current cap on commission payable to intermediaries to reflect current realities. The surveyor fee which has remained fixed at Rs.20,000 for very long, now needs a change and an upward revision would actually help the industry and customers to complete claim settlements quickly, he said.
Rao also called for a standardized approach for providing awards/compensation for road accident victims. Besides, the lack of any time bar for filing third party claims often creates problems, Rao said, adding that there is a need to limit both the time within which a claim can be made as well as the amount.
Future Generali India Insurance MD and CEO K. G. Krishnamoorthy Rao called for a standardized approach to providing compensation for road accident victims.
