As compared to last year, this year's general insurance market seems to have softened in terms of the premium amount charged. The reduction in general insurance claims can be attributed as one of the prime factors for this dip. Last year's catastrophes and aviation accidents had given rise to higher claims but this year they have been on the lower side.
United India Assurance, the Chennai based insurance entity that had been covering the oil and gas giant ONGC for past three years, have successfully retained their account. However, this renewal has come at a 35% cheaper rate than their previous deal. "ONGC has renewed its insurance account for its offshore assets worth $34 billion for a premium of around $20 million, more than 35 per cent lower than what it had paid for existing cover of $33 million," mentioned industry sources.
As per sources, the said insurance cover was about to expire on May 11 and has been renewed in the London markets. United India Assurance has provided the cover and it has been reinsured by global reinsurers Endurance and Aspirin as ONGC had floated a tender to underwriters in order to protect its offshore assets.