The year 2015 has brought some cheer for general insurance policy holders. Be it mediclaim, home, motor or travel, industry sources say that the premium for any of these policies is unlikely to rise this year.
Though India recorded a large volume of claims in 2014 (due to natural disasters in Kashmir and the east coast), the insurance premium rates in the near future are expected to remain unaffected, largely due to a positive global scenario.
Unlike India, the international insurance market last year saw lesser number of claims and enjoyed abundant liquidity. These factors have helped in softening the global reinsurance rates by 10-20%, said a senior executive from the industry. The official also explained that the premium rates of general insurance policies in India depend upon the reinsurance rate that is offered to Indian Insurers by General Insurance Corp. and other reinsurance companies across the world.
Another reliable industry source added that due to an increase in the number of international reinsurance firms, the volume of the reinsurance market has witnessed a positive change. This could also aid in keeping the premiums low for 2015.