S&P Insurance
Standard and Poor’s lowered outlook classes for Non-Life Insurance industry in India to become negative and stable underwriting results in recent years, which makes the standard S & P down grade.
The process of selecting what and who is insured by an insurance company assessed with the risk. The level of losses and expenses to premiums earned amounted to 121 percent during 2010 to over in India by a general insurance company. Anything in excess of 100 percent and it is a guarantee of loss. We believe the guarantee is aimed not impossible to improve significantly in the next 12 months, despite signs that prices are stabilizing. Overall industry remains profitable with investment income, but who can give effect to the market turmoil.
Although we see a weakening of prices, growth in the insurance field will always remain good and strong. This is caused by the lowest insurance penetration in India, 0.6 percent of gross domestic product.
India has around 24 insurance companies at the end of last September and the government-owned insurance for 60 percent of the market.
Standard & Poor’s credit analyst Paul Clarkson. “We take the same action in the Indian market because of the possibility of very poor performance guarantees there. Instead, we revised the market outlook in China and Malaysia to positive from stable to reflect their strong growth momentum.