Public sector insurers offered very low rates to eat up the competition in group medical cover business.
The four public sector general insurance companies have made a killing in the new year garnering a massive swing in group medical cover business away from the private sector companies. These companies have managed to rope in most of the big-ticket corporate clients for their group mediclaim insurance to move premiums worth close to Rs 1,000 crore. The large scale shift has caught the attention of the sector regulator too. The numbers are sizable enough to change the rankings in the insurance business by premium income generated. For instance, over 2013 ICICI Lombard had been reducing the distance between itself and Oriental Insurance, the smallest of the four public sector insurance companies. This will now revert back to the normal pecking order. In the general insurance business renewal of premiums happen towards the end of the calendar year. This year, sources close to the development told The Indian Express that the public sector insurers had gone aggressive and offered v...