Archive · 11 Dec 2025
New India Assurance Warns on Discounted Catastrophe Insurance
Girija Subramanian, the head of New India Assurance, talked about how insurance companies are selling policies too cheaply, especially for natural disasters like floods and landslides.
She said this is risky because these disasters are happening more often, and insurance prices should reflect the real risks.
She also mentioned that new rules coming in 2027 will make it harder for companies to balance losses with profits from other areas, so they need to start charging fair prices now.
New India Assurance plans to practice these new rules in 2026 to get ready.
Girija Subramanian warns against discounted insurance pricing for natural catastrophes due to increasing frequency of disasters.
She emphasizes that insurance prices should reflect the associated risks, especially in high-risk zones.
The industry's practice of cross-subsidizing products may become challenging with new accounting standards.
New International Financial Reporting Standards (IFRS) will require each insurance segment to be independently profitable.
New India Assurance plans to conduct trial runs of the new accounting framework in 2026, ahead of its 2027 implementation.
- Who
- Girija Subramanian, Chairman and Managing Director of New India Assurance
- What
- Warning about the risks of discounted insurance pricing for natural catastrophes
- When
- Wednesday (specific date not mentioned)
- Where
- Pune, during the Indian Marine Conclave
- Why
- To highlight the need for risk-based pricing and the impact of new accounting standards
- Person
- Girija Subramanian
- Role
- Chairman and Managing Director, New India Assurance
- Event
- Indian Marine Conclave
- Organizer
- National Insurance Academy
- Location
- Pune
- Date
- Wednesday
- Accounting Standards
- International Financial Reporting Standards (IFRS)
- Implementation Year
- 2027