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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY - page 56 / 228

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ANNUAL REPORT 2007-08

The Re-insuranceAdvisory Committee at its last meeting held in February, 2007 recommended to the Authority that the obligatory cessions be reduced from existing 20 per cent to 15 per cent for the year 2007-08 and 10 per cent for the year 2008-09. The Authority accepted the recommendation and issued gazette notification giving the revised obligatory cessions for the next two years. Segment-wise retentions for the country as a whole for the year 2007-08 are at Statement 28. The Authority also decided that the Commission and

Profit Commission terms for statutory cessions for the year 2008-09 may be mutually negotiated and agreed upon between the insurer and the Indian Re-insurer.

  • iv.

    Monitoring of Investments of the insurers

    • (a)

      Investments of the Insurance Sector

The investments made by the insurers both life and non-life separately for public and private sector is given in the following table.

2006-07

2007-08

2006-07

2007-08

2006-07

2007-08

Public Sector

559201

674475

44171

47216

603372

721691

INSURER

Private Sector

44979

Total

604180

(20.61)

(6.9)

87566

6212

9064

(94.68)

(45.91)

762041

50383

56280

(26.13)

(11.70)

TABLE 36

Total

(Rs.Crore)

(25.02)

INVESTMENTS OF INSURERS

Life

Non-Life

51191

654563

(19.61)

96630

(88.75)

818321

The investments of the LIC increased by 20.61 per cent (in view of its large base) and, in the case of private insurers, the growth was 94.68 per cent. Increase in investments by public sector non-life companies was 6.9 per cent and for private sector non-life insurers it was 45.91 per cent. As on March 31, 2008, the total investments by the insurance industry have grown to Rs.818321 crore as against Rs.654563 crore in the previous year. While investments of the life insurers increased by 26.13 per cent to Rs.762041 crore, the corresponding increase in the case of non-life insurers was by 11.70 per cent to Rs.56280 crore.

(b) Life Insurers

The broad pattern of investments out of premium generated by traditional products during 2007-08 remained on the same pattern of investments in 2006-07. However, investments in Infrastructure and Social sector has declined from 13 per cent to 10.91per cent.

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