United India revised business plan

State owned general insurer, United India Insurance Company (UIIC), one of the largest non-life insurance companies in the country, says its initial plan for 14% growth has to be reworked because of the impact of the COVID-19 pandemic.

In an interview with Financial Express, UIIC chairman-cum-managing director Girish Radhakrishnan said that all aspects of the company's business plan are being reviewed.

Referring to the effects brought about by the pandemic, he said, “We faced significant negative revenue growth in some lines of business because customers are compelled to defer their insurance renewals. New motor business, already reeling from the year-long downturn in the auto sector, has been further hit since dealerships have been closed and the slump in sales continues. Core industry sectors have also been affected by the pandemic.”

Commenting on the company’s financial performance in the fiscal year ended 31 March 2020, he said, “We booked gross premium of INR17,500 crore ($2.3bn), clocking a growth rate of 6.6%. We grew significantly in property, including engineering, marine hull, personal accident and crop. While our agency channel continued to be the top single contributor, with a share of 47% of our total business, what was even more encouraging was that our digital sales showed good growth, bringing in about 15% of our total business and 42% of our total number of policies issued during the year.”

Source: Asia Insurance Review