Insurance Premiums: The Hit Of Inflation! Insurance premium is going to be expensive, there will be an increase of 10 percent, full details – insurance premiums to become 10 percent expensive

cost has increased

Explain that there are 24 companies involved in the general insurance industry of India. All these companies together hold 84 per cent market share in the general insurance industry. Indian companies buy large insurance covers to reduce the impact of unexpected liabilities and heavy losses. They usually buy insurance cover to protect against fire, marine-related risks, engineering and business interruptions.

motor insurance is mandatory

Motor insurance is mandatory for all vehicle owners in the country. Motor insurance alone has contributed around Rs 81,292 crore in premium to the total business of the general insurance industry in FY2023. According to industry experts, with the recent increase in reinsurance cost, the premium rates for buying insurance for cars, bikes and commercial vehicles are likely to increase by 10-15 per cent in the next few months.

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Banks have increased interest rates

According to media reports, central banks of Western countries have increased interest rates by 4.5-5% in the last 12 months. This has increased the cost of capital for global reinsurers. In addition, the uncertainty of climate change has also increased in recent years. This has also led to huge losses for the reinsurers. Losses for the industry have also increased due to some incidents in the Ukraine war.