Star Health and Allied Insurance Company Limited CC-Sep24.pdf · 2024-10-30
Just a few questions., you hosted an Analyst Day towards June end and you've given some guidance on the combined ratio as well three-fourth. You have an adverse effect in the month of June itself, also you know that second quarter typically remains high from both severity and the frequency of the claims, at the start of the year, you decided to get in some of the group businesses, which will eventually lead to a higher loss ratio. What has typically changed so that you see more loss ratios guidance looks? Secondly, at the start of the year you always think that probably the normal combined ratio would be around 95%, 96%. We typically end up at a higher number . Is that a structural change and should one probably change the assumption and take the combined ratio towards the higher end of the assumption? Second part to the question. Congrats for the new business premium because this is one area that you really wanted to achieve that, but you have probably taken various price hike in the past as well. Despite that we see the growth coming down from 20 towards 16, even in the past price hike your loss ratios has gone up, but you are again taking the price hike with the new business premium, but again it can eventually lead to a problem of a portability like situation where higher portability and the renewal premium growth will be subdued again. So how would you address them both and what is the new normal for us to understand?
Sorry sir, I'm just trying to understand more from a combined ratio aspect. Has that probably changed because severity of the claims are rising, medical inflation is there, because what happens typically is we think that the loss ratio is likely to sustain between 60 -65% where probably you will end up at 4 -5% in core operating profitability eventually. I'm just trying to understand, has it changed, do you believe that potentially one should think given the medical inflation right now, one should tend towards the higher end of the curve?