Behavioural biases that damage your investments!
In matters of investment, the sooner you acknowledge your mistakes, the sooner you'll find help in getting out of the soup. To break free from biases, the first step should be to identify those biases, says, Balwant Jain, Tax and Investment Expert.
The Russia-Ukraine conflict is set to trigger a hike in insurance premiums that motor vehicle owners and Indian companies pay, thanks to reinsurers, who, hit by the war and other losses, were forced to raise their rates between 40% and 60%, the Hindustan Times has reported.
Industry estimates suggest that the hikes might be to the tune of 10% of the premiums which might span a range as diverse as properties, motor vehicles, other liabilities and even marine insurance. As a direct outcome, the insurance of two-wheelers, four-wheelers and commercial vehicles might witness a rise in premiums and the latter might raise the transport cost of goods in general.
The hike is likely to hit in the next few months.
Reinsurers are companies that provide insurance to insurance companies. In other words, insurance companies try to manage their risk through reinsurance companies.
Bhargava Dasgupta, managing director and CEO of ICICI Lombard General Insurance was quoted saying, “Extensive damages are happening, which in turn, increased the reinsurance cost for Indian insurer.. due to the exposure of catastrophic losses, (reinsurance) rates have gone up, which affects all lines of business – factories, properties, motor. The lines that got affected more are the commercial lines, for corporates.”
Industry veterans said that about half of the premiums for property and liabilities of businesses are reinsured, making the premiums paid in this country directly vulnerable to a rise in global rates.
Incidentally, in the financial year 2022-23, the general insurance sector in the country underwrote gross premiums of Rs 2.15 lakh crore. This amount represents a rise of 16% compared to 2021-22.
Insurance Regulatory and Development Authority of India (IRDA) data show that the rate of growth gross direct premium of marine insurance was the highest in 2022-23 – 21.36%.
The rates of growth in premiums collected for insurance in engineering, liability, motor and fire sectors were 20.15%, 16.05%, 15.42% and 11.07%, respectively.