It is hard to conceive of losses from floods in a desert.But that is what the country’s designated national reinsurer General Insurance Corporation is facing now — a claim for $20-million due to the floods in Dubai after a long time.
“We expect to see claims worth $20 million in Dubai mainly from damage to property,” said Alice Vaidyan, chairman and managing director, GIC Re., the reinsurer.
“For the last three years we have been getting huge claims due to natural catastrophe ..
The reinsurer, which earns half its premium by underwriting international treaties, will review its policy to bring down losses.
GIC Re’s is expected to touch Rs 16,000 crore in premium income by the end of the current financial year.
“We are reviewing our way of underwriting protection compared to other reinsurance companies,” said Girija Subramaniam, Deputy General Manager, GIC Re.
Indian insurance companies have seen claims due to floods in Jammu and Kashmir, Cyclone Hudhud followed by Chennai floods.
In the current financial year, the industry had paid Rs 5,000 crore claims due to Chennai floods. Of this, GIC Re had seen hit of Rs 1,500 crore as part of the reinsurance programme.
GIC Re had posted profit of Rs 2,693 crore in 2014-15. Its gross global premium was Rs 15,183 crore and 47% of it had come from international operations.