”A text message sent to Alice Vaidyan, Chairman and Managing Director of GIC Re did not elicit any response. Secondly, with GIC Re being a listed company, profit is now its motive.As per the circular from GIC Re, all non-life insurance companies will have to add the cost of procurement/management costs to the IIB-identified rates and accordingly quote for their corporate clients. However, the bad thing is that corporate clients which have a favourable claims ratio too will have to pay a higher premium.Explaining the impact, another insurance broker said, “For power and pharma companies, the premium rates have gone up three times while for chemical manufactures, where the loss ratios were very high, the rates have gone up nearly nine-fold. | FALAKNAAZ SYED Published: Mar 25, 2019, 1:23 am IST Updated: Mar 25, 2019, 1:23 am IST Eight segments suffer steep hike as GIC Re increases rates.
With huge claims from corporate clients, GIC Re had been suffering and so it identified eight sectors that have huge claims outgo and where the premiums are not sufficient to meet the claims and told the insurers that treaty is available only if they follow IIB rates, which are based on the burning cost (claims outgo) of each sector,” added the broker.”“Since GIC Re is the market leader, all insurers have treaty arrangement with GIC Re. Now with the new rates, some sanity will prevail in the market.33rd Day Of Lockdown Total Cases 26,283 1,835 Recovered 5,939 China wholesale auto door seal .