Mumbai: Despite the government asking the state-run general insurers to strictly follow underwriting norms, the insurers preparing for initial public offerings (IPOs) feel they will take at least two more years to start making underwriting profits. However, the department has found that these companies are violating the advisories leading to huge underwriting losses. “Both private and public insurers have been making losses in business, but are in overall profits due to investment income. The industry’s underwriting losses jumped 42% to Rs14,962 crore, pulling down cumulative net profit by 30% to Rs3,238 crore in 2015-16. State-owned players’ underwriting losses went up by 54.4% to Rs10,839 crore in 2015-16 from Rs7,019 crore in 2014-15, whereas private sector players’ underwriting losses also increased to Rs3,662 crore from Rs2,495 crore during the same period.

Source: Mint July 16, 2017 11:15 UTC