With decline in overseas rates home insurance to get cheaper
06 Mar, 2014 01:01 PM
The cost of insuring homes and factories against natural calamities is likely to fall, in line with some 10% decline in overseas rates amid stiff competition, according to industry executives.

"There is oversupply of reinsurance capacity in the international market, and Asia Pacific renewals on January 1 saw around 10% reduction in rate," said Sanjay Kedia, country head for Marsh India, an insurance broker. "The Indian market is trying to hold on to rates during reinsurance treaty renewals on April 1, given the challenging underwriting results."

There were no major natural calamities in 2013, which, according to industry executives, helped lower reinsurance rates during January 1 renewals.

The loss to insurers due to natural catastrophes and man-made disasters, according to insurance company Swiss Re, nearly halved from 2012 to about $44 billion in 2013.
Source : The Economic Times

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