Mumbai: Tata AIG General Insurance reported a net profit of Rs 1,008 crore for FY2016 despite facing the largest claims in Indian aviation history last year. The company’s books were safe due to its conservative policy of reinsuring most large risks.General Insurance Corporation had estimated claims from the Air India Ahmedabad crash last year at more than $400 million. Since then, reinsurers have settled some claims. Tata AIG, the leading insurer, held 45% of the risk. “We had fully provisioned for it in the same quarter. Our exposure on reinsurance basis was less than Rs 50 crore,” said Amit Ganorkar, MD and CEO, Tata AIG General.The company’s equity capital and reserves stood at Rs 6,545 crore at the end of March 2026. The total exposure taken by the company was less than 1% of its net worth. However, the claim impacted the company’s solvency ratio by 10 basis points, bringing it down to 1.91.Tata AIG is the third largest private insurer, with gross premium of Rs 20,749 crore in FY26, and the second largest private insurer in motor insurance. It is also the second largest insurance company in the commercial sector. However, in health insurance, it has a very low market share, ranking eighth among private players.“Health is our fastest growing segment. Our retail health book is running around Rs 200-250 crore per month, and we are looking to expand. Health premium contribution has grown at around 22-23 per cent this year,” Ganorkar said. “Last year our annual GWP for health was about Rs 4,500 crore, which shows an increase of about 40 per cent,” he said.“Our target is to make healthcare 20-23 per cent of our overall premium mix, which will bring us in line with the broader industry. We currently aspire to be among the top five in the health sector,” Ganorkar said.The company is using technology extensively to improve efficiency in health insurance. “In health, AI is being used to read discharge summaries, predict disease patterns, conduct health assessments through imaging, and provide digital medical second opinions through digital video consultations.”Ganorkar said the company expects small-value claims to move entirely to AI-generated settlements within two years, with no human intervention required. The company has also launched a cover targeting those taking health insurance from employers. For the initial period, the cover acts as a top-up on the employer’s cover and can later be renewed from the base amount as a comprehensive cover.
