New India To Launch Parametric Product

New Delhi: State-owned New India Assurance will this month launch a parametric insurance product, which will provide a financial safety net to its retail and business customers against climate risks, said chairman and managing director Girija Subramanian on Tuesday.

Parametric insurance refers to losses arising out of calamities including heavy rainfall, high speed wind and flood/drought. Unlike traditional insurance policies, the payout in case of parametric insurance products depends upon triggering of pre-defined parameters, thus allowing for quicker claim settlement. “Parametric insurance is a use and file product, which is allowed by the regulator IRDAI. We have got it already registered on IRDAI so the product is ready and can be used across both retail and business groups. We are ready with that in a big way,” Subramanian told PTI.

On Monday, New India Assurance had reported about 2 per cent drop in net profit at Rs 347 crore for the fourth quarter ended March 2025. The public sector general insurance company had a net profit of Rs 354 crore in the March quarter of 2023-24 fiscal, according to a regulatory filing. Total income, however, rose to Rs 10,966 crore in the latest fourth quarter, up from Rs 10,849 crore in Q4FY24. For the full 2024-25 fiscal year, New India Assurance reported a 12.49 per cent drop in net profit at Rs 988 crore. In FY24, the net profit was Rs 1,129 crore.