Insurance Sector, basically health as well as automobile sectors has much potential for covering more than 50% of total Insurance portfolio in the country. Other sectors like Travel / logistics / Personal Accident etc also add to the unending potential in the nonlife market.
In a recent development IRDAI has given its nod to the insurers to increase or decrease the insurance premium by up to 15 %, subject to their claim experience in a particular sector. In case an insurance company faces a higher loss ratio or higher claim, it need not file permission to the IRDAI for increasing the insurance premium.
The General Insurers have also welcomed the IRDAI decision to allow payment of premium on an installment basis as currently this was available only for life insurance companies. Bringing the installment mode to health insurance might turn out as an incentive to the people to buy an insurance cover.
IRDAI has also given its nod to the insurers to add approved standalone riders or add-ons to approved individual health insurance products without having to file the product again. It also permitted insurers to change the sum insured made available to a policyholder if it is within the range filed for the original policy.
The Insurance market in India is strictly regulated and the stakeholders often complain about too many restrictive practices which is a hindrance to growth and development of the market. IRDAI has similarly allowed a sandbox approach for insurers to test the products before launching.
Education sector in Insurance is not developing as per the requirement of industry. After IRDA allowed Insurers to conduct the training themselves there has been a significant decrease in the level of quality training and most of the training is being held on paper. Some serious thoughts must be given for improving quality education in the sector.
