ICICI Securities: General Insurance Sector Outlook - Rising Covid-19 Claims Will Increase H2 FY21 Health Loss Ratios
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ICICI Securities Report
Rising Covid-19 claims against the backdrop of normalisation in non-Covid claims is set to put health loss ratios under pressure in H2 FY21.
While exponential increase in Covid claims will lead to cut in earnings estimates, well-funded insurers stand to gain market share in health insurance in the longer run.
Covid claims on exponential rise: From 24 million U.S dollar in June, claims in this segment have risen to 362 million U.S. dollar by end of August.
The exponential increase is evident from the perspective that total Covid claim amount till June-end was 75 million U.S. dollar while July added 78 million U.S. dollar and August 209 million U.S. dollar.
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