Insurance ind estimates fall in growth of premium turnovers

HYDERABAD: Insurance industry is likely to register a fall in the growth rate of its premium turnovers in the current fiscal due to the global meltdown, IRDA Chairman J Hari Narayan said.

"The growth rate of premium turnover is estimated to come down to 17 per cent in the current year, against 24 per cent last year," IRDA Chairman J Hari Narayan said here on Tuesday.

Narayan, however, said the actual turnover may be more than last year, but the growth rate will be lower.

Further, without referring to the numbers, he added, the valuations on investments have also impacted badly due to financal downturn.

Narayan said the insurance companies, however, have not lost their financial strength due to the downturn, but their profitability may be hit.

"The companies are maintaining the solvency norms as insisted by the IRDA," he added.

A life insurance company has to maintain 1.5 times the laibility of the company towards solvency margin amount.