ICICI Lombard General Insurance reported an all-round improvement in its second quarter of fiscal 2027, driven by growth across motor, health, and commercial lines. According to The Hindu BusinessLine, the company’s Chief Financial Officer, Gopal Balachandran, stated that the insurer consciously selected risks to drive profitable growth, resulting in a 13.9 per cent increase in business. This performance outpaced the industry growth rate of 13.2 per cent for the same period, excluding the more volatile crop insurance segment.
Balachandran noted that loss ratios remained within expected ranges, contributing to a favourable overall outcome. The company’s combined ratio was nearly flat, excluding certain one-off factors. He contrasted this stability with the broader industry scenario, where the combined ratio deteriorated from roughly 150 per cent in the first quarter of last year to nearly 170 per cent in the current year. ICICI Lombard maintained a gap of at least 10 percentage points between its combined ratio and the industry average, a margin the CFO said should support future improvements.
Regarding operational costs, Balachandran addressed the regulator’s focus on making insurance more affordable through Expenses of Management norms. The Hindu BusinessLine reported that while around 13 of the 35 market players still exceed prescribed EoM limits, ICICI Lombard has consistently operated within the regulatory threshold. This discipline, the CFO argued, has been a key contributor to the company’s financial position in an otherwise challenging environment.
The discussion also covered price erosion in the first half of the year, particularly affecting large-ticket exposures. Balachandran explained that the regulator has directed companies to revisit pricing models, while reinsurers have emphasized the need for underwriting books to deliver favourable outcomes to maintain access to capacity. He described these efforts as a concerted move to correct market pricing.
Finally, the CFO evaluated the Insurance Regulatory and Development Authority of India’s proposed distribution reforms. He viewed the draft consultation paper as a progressive set of regulations aimed at increasing consumer coverage and improving insurance penetration. The objective, according to Balachandran, is to shift insurance from a push product to a pull product, aligning with the long-term trajectory laid out by the regulator.