Entire thrust will be on retail health this year

The New India Assurance Company, India's largest general insurer, will double down on retail health insurance—a segment currently dominated by standalone health insurers.

- Girija Subramanian

Chairperson and MD Girija Subramanian speaks to Narayanan V about the retail health push, the premium outlook for FY26 and new growth areas. Excerpts:

What has been the impact of stagnant motor third-party (TP) premiums on the business?

Motor TP is a mandatory line of business. We are obligated to provide cover to anyone who seeks it. However, premium rates are fixed by the government, and we have no say in the matter. There hasn't been any significant revision in TP premiums for the past five to six years. The industry has made several representations to the government, the regulator (IRDAI), and MORTH, but so far there has not been any indication of an increase.

This is a growing concern for the industry. For insurers to sustain, premiums must be adequate. Currently, loss ratios in motor TP are very high. Many claims end up in court, and legal awards have seen double-digit increases, significantly raising claim costs. If premiums remain unchanged, it will have a detrimental effect on insurers and will increase their loss ratios.