Heavy monsoon in Bengaluru leads to rise in claim intimations
News: Heavy monsoons in Bengaluru and resultant damage to motor vehicles have led to a rise in claim intimations. With more rains likely over the next few days, insurers are expecting a further rise in claims. IRDAI had asked insurers to simplify the claim settlement process earlier during floods in Maharashtra, Andhra Pradesh and Tamil Nadu. It is possible that the insurance regulator will notify similar guidelines this time as well.
View: The impact of a rise in claims is expected to be seen in Q2FY23 and Q3FY23 for general insurers. However, we await clarity on geographic exposure. In our coverage, ICICI Lombard’s motor segment contributes 33% of total premium (Q1FY23).