COVID-19 disrupted business models of insurance cos: Official

The COVID-19 pandemic has disrupted business models of insurance companies, which have seen degrowth, IFFCO-TOKIO General Insurance said on Saturday "In a situation like this when everything is uncertain, insurance has become critical. The pandemic has disrupted all businesses models," MD and CEO of IFFCO-TOKIO Anamika Roy Rastrawar said.

All insurers have seen a degrowth in the months of April and May due to the coronavirus lockdown, she said at a webinar organised by MCCI.

Rastrawar said while motor insurance had been the biggest line of business for general insurers, the pandemic has resulted in the health vertical emerging as an important area.

"The motor insurance business was 42 per cent followed by health at 23 per cent in 2019-20," she said, adding, health insurance will overtake motor within a short period of time.