Insurers Plan Minimum Rate for Fire Insurance Natural Catastrophe Component
· Business · Economic Times
Non-life insurers in Mumbai are considering a minimum rate for the natural catastrophe component of fire insurance. The proposal follows concerns that steep discounts in the segment could expose the industry and reinsurers to heavy losses. The Insurance Regulatory and Development Authority of India chairman Ajay Seth recently expressed concern over insurer financial health and underwriting discipline. The discussions come in the wake of aggressive pricing and recent fire losses in Gujarat. Insurers are aiming to restrict discounts specifically to the flexible fire rate component.
Why it matters
The proposed minimum rate directly affects industrial policyholders and commercial enterprises by curbing steep premium discounts, potentially increasing insurance costs for businesses.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.