The then Union Finance Minister Mr. Pranab Mukherjee reviewed the performance of Public SectorInsurance Companies, including LIC, GIC Re and Agriculture Insurance Company of India Limited, during fiscal 2011-12 in a meeting held at New Delhi on the 13th of June 2012. The CEOs of the insurancecompanies including the Life Insurance Corporation of India and General Insurance Corporation of India were present on the occasion.
In his address to the CEOs, Mr. Mukherjee said that ‘the insurance sector has been contributing immenselyto the infrastructure development of the country.’ He, however, expressed concern over the fact that ‘the Indian general insurance non-life sector market is structurally challenged in terms of profitability’. He said that India is the only country in Asia with a combined ratio of 105 and above consistently during the last 5 years’.
Mr. Pranab Mukherjee however, complimented the public sector insurance companies in reaching out tothe people in far-flung areas. He said that there is need to cover all the remaining un-served areas especially district headquarters. He emphasised on the need to take the e-governance routefor this purpose and enable good corporate governance in the industry. He stressed on achieving a balance between growth and profitability and said that our strategy in coming years should be guided accordingly. Speaking about Reinsurance, Mr. Pranab Mukherjee said that ‘reinsurance is an integral part of the insurance sector and GIC Re is the sole Indian reinsurer in the country. While the loss of ` 2490 crores during 2011-12 is largely attributable to the natural catastrophes in Japan and Thailand and also due to the provisioning on account of motor pool, the larger policy issue of minimization of exposure risk, diversification of risk, due diligence while assessing the country specific risk etc remains and I am sure GIC Re is making all necessary efforts in this direction’.
Ranked 13thLargest Global Reinsurer Group(compiled by A M Best)