In its quest to shore up premium income in a market marked by economic depression, cut-throat competition, and massive undercutting, the
general insurance segment ended up spending more on commissions and incurred higher management expenses than its proportionate rise in premium income during 2008-09.
According to latest data released by sector regulator Irda for 2008-09, the non-life cover segment saw a 16% rise in premium income while its outgo under commissions and management expenses rose by 24%. The entire segment spent Rs 19,700 crore under the head. This was around 35% of the total premium income which stood at Rs 24,411 crore.
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