‘Bima Sugam to boost no-frills health products’

Record auto sales following the GST rate cut have brightened prospects for higher motor insurance premiums.

- @ V SURYANARAYANAN, MD, CHOLAMANDALAM MS GENERAL INSURANCE

Cholamandalam MS General Insurance Managing Director V Suryanarayanan tells Narayanan V how the rate rationalisation will impact motor and health insurance premiums and the role of Bima Sugam in insurance distribution. Excerpts:

Will higher vehicle sales drive motor insurance premiums?

That is the industry-wide expectation. From what we have seen on Day 1 (of the GST rate cut), things look bullish. The government announced the rate cut on September 3 and implemented it from September 22. Many buyers had held back their purchases, so there is also some pent-up demand. The next few days will show whether the growth is broad-based or just seasonal. From a general insurance industry perspective, the motor third-party (TP) segment is critical, as it accounts for nearly 55% of the industry’s motor premium. This share will continue to rise each year because the vehicle base keeps expanding.