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Updated List of Web Aggregators: IRDAI Web Portal

Mar 09, 2016

IRDAI has published the latest list of Insurance Web Aggregators on its website.

As per IRDA (Web Aggregators) Regulations 2013, a “Web Aggregator” is a Company registered under Companies Act, 1956 (1 of 1956), approved by the Authority under these guidelines, which maintains/owns a web site and provides information pertaining to insurance products and price comparisons of products of different Insurers and offers leads to an Insurer / Insurance Broker.

Check the latest list here!

Third-party motor insurance premium to go up by 9-30%

Mar 08, 2016

Insurance premiums might rise by nine to 30 per cent across categories in private cars, two-wheelers and commercial vehicles, with the Insurance Regulatory and Development Authority of India (Irdai) proposing a revision in motor third-party premiums.

For private cars, with engine capacity not exceeding 1,000cc, the rise proposed is 30 per cent. For those exceeding 1,000cc, it is 25 per cent.

Third-party motor premium is regulated by Irdai and revised yearly, based on inflation and claims. This type of insurance is mandatory for all motor vehicles on Indian roads and covers the owner from third-party liability arising out of accidents or damage.

For two-wheelers, there would be a rise of 10-15 per cent for vehicles up to 350cc, while a 10 per cent drop has been proposed for vehicles exceeding 350cc.

For commercial vehicles, a rise of 25-30 per cent has been proposed. Insurers say claims are high in this segment.

Based on the comments from stakeholders, Irdai will bring out the final rates to be applicable for the financial year beginning April 1.

Source: Business Standard

New Irdai norms to ensure faster growth of general insurers: Industry leaders

Mar 08, 2016

The Rs 84,000-crore general insurance industry feels that the 'use and file' norms unveiled recently by Irdai will ensure faster growth in the industry, though the regulations may lead to price rise of such products.

The new norms, coming into force from April 1, will allow marketing of corporate products even before the regulatory approval.

"The new system would enable insurers to adapt faster to the requirements of commercial entities. All of these changes are positive, indeed path breaking," ICICI Lombard General Insurance managing director and chief executive Bhargav Dasgupta told PTI.

"We have asked the industry body General Insurance Council (GIC) to prepare the common wordings while designing covers for the corporates," New India Assurance CMD G Srinivasan, who is also the chairman of GIC, said.

"A price rise across the segments is very much expected", he said without divulging any further details.

According to Srinivasan, the new norms will bring in a great deal of discipline in the general insurance industry improving the financials of the industry.

"With the stipulation that the general insurers have to operate under 100 per cent combined ratio, the industry should see rate hardening which over a period of time would ensure underwriting profits," SBI General senior vice president, marketing and product development Gunjan Ghai said.

In some of the competitive risk areas, this would likely improve the profitability of insurers as a whole, he added.

Post detariffing in 2007 under which pricing of general insurance products are being determined by the market forces, the general insurance industry has seen a cut throat competition in pricing of the products leading to losses in the industry. The only exception is third party motor premium which is the only product whose price continues to be fixed by Irdai.

Sasikumar Adidamu, chief technical officer (non-motor), Bajaj Allianz General Insurance said that "the Irdai norms would facilitate insurance companies to adopt a more structured approach while designing products, pricing and diligently manage the operations of the entire product lifecycle. This change will stand in good stead for companies, as they will be able to create more innovative and need based products."

"The new norms would check under pricing as the pricing would require actuarial and technical justification that has to be approved by a product management committee, a special committee to be formed by the concerned company", he added.

"The general insurers who are already doing business in the current market will be benefited to sell new products. This will contribute growth in gross written premium for the year 2016-17," Future Generali India Insurance MD and CEO Krishnamoorthy Rao said.

Rao advised that the new norms should be applicable for retails lines too on the plea that 'use and file' guidelines can help insurers offer varieties in retail products which can take care of consumer needs on day to day basis and it will result in boosting the growth under retail lines."

However, a section of the industry is not in its favour.

"Industry is yet to mature to be empowered. In order to protect retail customers' interest, regulatory oversight is desirable at this juncture", Tata AIG General Insurance president M Ravichandran said.

Source: The Economic Times

93% respondents do not own home insurance policy: Survey

Mar 08, 2016

Around 93 percent of respondents of a recent survey conducted by ICICI Lombard do not own a home insurance policy.

This, despite the fact, that 62 percent of those surveyed were aware of the benefits of a home insurance policy, a company statement said.

It revealed that most home owners did not feel the need to get their homes covered and 59 percent of the respondents said that they would buy a home insurance policy if the premiums were lower and the claims process was made easier.

"Home insurance, as a segment, is hugely under-penetrated. Although a home insurance policy can help ease the financial burden that arises out of severe disasters such as floods, storms, earthquakes and riots," ICICI Lombard chief Underwriting and Claims Sanjay Datta said.

The survey was conducted across a user base of 2,000, half of whom were in the age group of 36-40 years. 62 percent of the respondents had acquired their homes only in the last three years.


Irdai sets up panel (to) establish insurance service centres

Mar 03, 2016

Insurance regulator Irdai today set up a 7-member committee for establishment of insurance service centres with an aim to provide prompt servicing of policyholder in the most cost efficient manner.

The proposed company neutral centres will help insurers in reducing the costs which are involved in setting up brick and mortar offices to service policyholders.

"These service centres can accept requests from the policyholder of any insurance company and pass on the same to the respective insurance company in a cost efficient manner.

"These service centres will not only increase the touch points that will become available to the customers but will bring insurance at the doorstep of the customer. The insurance companies would also gain by saving on investments to be made in the traditional brick and mortar offices," Irdai said.

The expert committee would be headed by Rajesh Relan ex-MD, PNB Metlife Life Insurance Company Limited. It would include Munish Sharda (CEO, Future Generalli Life Insurance), Neelesh Garg (CEO, TATA-AIG General Insurance) and Anuj Gulati.

Irdai said the committee would study the legal structure of the centres, capital requirements, and operational model, among other issues.

The regulator said insurance companies have been able to achieve some success in increasing insurance penetration in the country by largely employing insurance agents or insurance intermediaries.

"However, the desired goal of prompt servicing of policyholder in the most cost efficient manner is yet to be achieved," the Irdai's office order said.

Source: The Economic Times

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