Bajaj Finserv - Covid-19 Update and Business Continuity Plan
BAGIC's - Summary on Covid-19
BBAJAJ Allianz
The lockdown during Q1 FY21 has adversely impacted new sales in few segments. Although there
has been easing of lockdown since later half of May, volumes are still below pre-COVID levels.
Motor insurance has seen a de growth of 32.6% YoY on the back of lower sales of vehicles
Travel insurance has dried up in the 1st quarter due to limited opening of airlines & railways.
With heightened need of protection, demand for health insurance has picked with 15.5% growth in
retail health in Q1 FY21 vs Q1 FY20.
☐ Among the commercial lines, Property (fire) line has seen significant growth in Q1 FY21 aided by
hardening reinsurance terms.
☐ On claims front, the experience is mixed
Fewer motor claims during lockdown; however, with gradual opening claim frequencies have
started getting towards normal in the the green zones.
☐ Lower health claim ratios as non-COVID elective treatments are postponed. As normalcy
returns there may be an increase in these surgeries.
COVID claims are rising for the industry. BAGIC is currently well reserved for expected claims but
the extent to which COVID spreads will determine the actual claims.
☐ Delays in Motor Accident Tribunal cases may cause interest cost on such claims to rise.
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