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I N D I A
January 2019
Insurance E-Bulletin
Volume-24
THE ASSOCIATED CHAMBER OF COMMERCE AND INDUSTRY OF INDIA
ASSOCHAM Corporate Office: 5, Sardar Patel Marg, Chanakyapuri, Delhi-110 021
Tel: 011-46550555 (Hunting Line) Fax: 011-23017008, 23017009 Email: assocham@nic.in Web: www.assocham.org
I N D I A
Top Insurance News
IRDA TO STOP FIXING 3RD Piyush Goyal had assured truckers'
PARTY INSURANCE PREMIUM organisations to reduce this to 15%,
FROM 2021 which has not yet happened. “The
The Insurance Regulatory and regulator said they can't do anything
Development Authority (IRDA) has now since eight months of the current
indicated that it would disband the financial year have already passed. So,
practice of annual fixing of premium for there was proposal if they could limit
third party (TP) insurance for motor next year's hike to 10% or 10.5% and
vehicles from 2020-21. This would pave notify the increase early rather than
the way for insurance companies to waiting for March-end.
quote their own premiums, which may https://timesofindia.indiatimes.com/india/irda
tostopfixing3rdpartyinsurancepremiumfrom20
bring it down because of stiff
21/articleshowprint/66929248.cms
competition. Currently, the insurance
regulator announces the fixed premium
IRDAI PROPOSES CHANGES IN
for TP insurance cover, which is
mandatory for every vehicle that plies on
REGISTRATION NORMS FOR
the road. The transporters have been INSURANCE MARKETING
demanding that the regulator fix the cap FIRMS
for premium and allow insurance Regulator IRDAI Monday proposed to
companies to offer discount so that relax norms for registration of insurance
policy-buyers have greater choice. Since marketing firms with an aim to improve
there is no fixed premium for “own penetration of insurance products in the
damage”, insurance companies offer country. Insurance marketing firms
huge discount. Insurance companies (IMFs) are registered by the Insurance
collected about Rs 50,000 crore Regulatory and Development Authority
premium for motor vehicle insurance in of India (IRDAI) to solicit or procure
2016-17, according to Insurance insurance products. Earlier this year, the
Information Bureau of India (IIB). regulator had constituted a committee
Insurance companies have been more for review of IMF regulations. Based on
keen to sell comprehensive insurance the recommendations of the panel,
policies, which include both TP and own IRDAI has proposed several changes in
damage (OD). Officials told TOI that de- the existing framework governing IMFs.
tariffing TP premium came up for As part of the proposed changes, IRDAI
discussion last week when the Prime is considering to reduce the net worth
Minister's Office held a meeting on the requirement to Rs 5 lakh for applicants
demand of truckers to roll back the steep opting for an aspirational district. The
increase in premium for the current NITI Aayog has designated 117 districts
fiscal. Truckers had gone on strike in 28 states as aspirational districts. The
raising a host of demands including current capital requirement for
rollback of nearly 28% hike in third party registration as an insurance marketing
premium. Then interim finance minister firm is minimum Rs 10 lakh. IRDAI has
02 - ASSOCHAM Insurance-Bulletin - Volume - 24
I N D I A
also proposed expansion of the basket will need to pass resolutions before
of products which can be solicited or Parliament enacts a law for the
procured by an IMF to include group constitution of the NHA. Senior officials
insurance products for Micro Small and at the Health Ministry, NITI Aayog and
Medium Enterprises (MSMEs), crop the National Health Agency refused to
insurance for non-loanee farmers and comment on the proposal.
combi products. Simplification of
process of resignation of insurance sales WHY SEPARATE BODY MAY
person and expansion of the scope of HELP
work of Principal Officer are some of the Globally, state health insurance
other key changes proposed in the programmes and price models are under
current regulations. a system that bypasses the national
https://www.moneycontrol.com/news/india/ir health ministry. In India, there are
dai-proposes-changes-in-registratio n-norms-
concerns that since PMJAY only caters to
for-insurance-marketing-firms-3247891.html
around 40% of the population, setting
the price for 50 crore people could
TO MANAGE INSURANCE FOR
artificially inflate health costs for the
ALL, NITI AAYOG PLANS NEW remaining 80 crore. Hence, the
AUTHORITY, NOT HEALTH argument for a distinct authority. The
MINISTRY PMJAY is the most ambitious social
The NITI Aayog has proposed the sector scheme of the NDA government.
formation of a National Health Authority Launched on September 23 by Prime
to administer the Pradhan Mantri Jan Minister Narendra Modi, the scheme
Arogya Yojana (PMJAY) and will be entitles 10.74 crore families to an annual
chaired by the Health Minister with the health cover of Rs 5 lakh. A part of the
Aayog as its administrative body. The overarching Ayushman Bharat scheme,
proposal will need to be cleared by the PMJAY is currently administered by the
Union Cabinet and if accepted, will mean National Health Agency which is a
that the Union Health Ministry will have registered society under the Health
little say in the NDA government's Ministry. While the Health Ministry is not
flagship health scheme. The NHA, for all responsible for the day to day running of
practical purposes, will report directly to the scheme, it does have a say in policy
the Prime Minister's office and will stay at matters. For example, the package rates
“arm's length” from the Union Health were decided by the Directorate General
Ministry. Envisioned as an autonomous of Health Services. An authority with
body, the NHA, according to officials, statutory backing will also have penal
could initially be formed by an executive powers and can issue orders to its state
order as with the Unique Identification counterparts rather than the “advisories”
Authority of India (UIDAI) but will that the National Health Agency
eventually need statutory backing. But currently issues to the state health
with health and public health being state agencies. Penal powers will also mean
subjects, two or more state legislatures that the NHA can act against errant
03 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
hospitals. Currently, even to de- FROM JAN 1, IRDAI ALLOWS
empanelling a hospital violating norms, UNBUNDLING OF COMPUL-
the agency has to go via the Health SORY PERSONAL ACCIDENT
Ministry and the only recourse left is to
COVER IN MOTOR POLICIES
file an FIR.
Back in October, car and two-wheeler
There are, however, concerns in some owners were hit by an Insurance
sections of the government on the NHA's Regulatory and Development Authority
powers to decide package rates. Given of India (Irdai) ruling that saw an increase
that the PMJAY currently caters to 50 in the overall cost of ownership of a
crore people, there are apprehensions vehicle. Irdai had increased the
that with government buying services for compulsory personal accident coverage
one section of the population, health amount from Rs 1 lakh to Rs 15 lakh and
expenses for the other 80 crore could get thus, pushing the cost up. The insurance
artificially inflated. A chain of command regulator has some good news though
for a national health insurance for vehicle owners. Effective January 1,
programme that is independent of the 2019, IRDAI has unbundled the
Health Ministry is a common practice compulsory personal accident (CPA)
internationally. In China, for example, the cover and permitted the issuance of a
State Medical Insurance Administration stand-alone policies. This move can
reports directly to the Politbureau. It also reduce the cost of ownership of a
has full say over the prices of medical vehicle. Here's how this can happen. As a
services. Medicaid in the US too has say policyholder, the premium of Rs 750 per
over prices as does the Universal annum for annual CPA cover for both
Coverage Scheme in Thailand. Such a cars and two-wheelers was to be paid.
structure is important because currently, Now, effectively, this is the amount of
every fresh proposal that the Agency savings if one already has a stand alone
moves for the minister's approval has to personal accident cover.
traverse the entire hierarchy of the
Ministry from the level of an
BUYING STANDALONE COVER
undersecretary before it reaches the Effective January 1, on expiry of a
minister. Valuable time is lost in all this bundled CPA cover, it may be replaced
and often the proposal does not even with a standalone CPA cover and the
make it. That is not good for a scheme of same may be taken from any registered
this nature general insurer. Since a general personal
https://indianexpress.com/article/india/to-
accident cover also includes cover
manage-insurance-for-all-niti-aayog-plans-
new-authority-not-health-ministry-5483937/ against motor accidents, if an owner
driver already has a 24 hour personal
accident cover against death and
permanent disability (total and partial)
for CSI of at least Rs.15 lakh, there is no
need for a separate CPA cover to be
taken. "Insurers now have to come up
04 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
with a stand alone PA cover of Rs. 15 lakh THE BACKGROUND
which will be available for the customers. Earlier, Irdai had asked insurers to
If he has a CPA cover from another provide a minimum cover of Rs 15 lakh
insurance company then it is not under CPA for owner-driver vehicles at a
mandatory for him to buy it again," says premium of Rs 750 per annum for annual
Sajja Praveen Chowdary, Business Unit policies for both cars and two-wheelers.
Head- Motor Insurance, Insurers can offer higher covers in
Policybazaar.com multiples of Rs 1 lakh or Rs 5 lakh as well
but the minimum has to be Rs 15 lakh.
OPTIONS On October 9, 2018 Irdai issued a circular
Now, if a policyholder chooses to opt for stating that it is the choice of the owner-
the CPA cover as part of the liability only driver to opt for a one-year CPA or long-
policy or the package policy as it exists term CPA and insurers cannot compel
today, one can continue to do so. In the owner-drivers to go in for long-term
event the policyholder chooses to take a package policy or long-term PAC policy.
stand-alone CPA policy, the CPA cover Irdai has directed insurers to ensure that
offered as part of liability only or they necessarily offer the choice of one-
package policy shall be deleted. year CPA to an owner-driver.
https://economictimes.indiatimes.com/wealth/
insure/from-jan-1-irdai-allows-unbundling-
WHY UNBUNDLED of-compulsory-personal-accident-cover-in-
Irdai, in its statement, said it had motor-policies/articleshow/67057085.cms
received from various quarters wherein
it has been pointed out that many GST COUNCIL MAY LOOK AT
owner-drivers already have existing REDUCING TAX ON THIRD
general Personal Accident covers which
PARTY INSURANCE PREMIUM:
ought to be taken cognizance of. Also,
the fact that owner-drivers may own
REPORT
The Goods and Services Tax (GST)
more than one vehicle needs to be taken
Council may consider cutting the tax rate
into consideration in a more rational
on payment of third-party vehicle
manner so that the owner-driver does
insurance premium in order to "ease the
not have to take different policies for
burden on consumers". The Prime
different vehicles that one owns.
Minister's Office (PMO) has asked the
Coverage under the stand-alone CPA will
finance ministry (Department of
extend to all the vehicles owned by the
Financial Services) to look into the issue
owner-driver under the same policy. In
and "prepare a proposal that can be
other words, the cover under the stand-
placed before the GST council. Third-
alone CPA policy will now be valid when
party insurance premium is taxed at 18
the owner-driver drives any of the
percent right now, and it is mandatory
vehicles one owns.
for every vehicle owner to have a policy.
There was a unanimous view that the
GST rate needs to be rate needs to be
05 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
rationalised in this case since the vehicle insurance plans (Ulips), except that they
owner has no choice than buying the do not offer insurance currently. Your
policy. The GST council is expected to money gets invested in the funds of your
meet in the next 10 days to consider choice and just like Ulips, ULPPs come
various contentious issues, including with a lock-in of five years.
bringing petroleum and aviation fuel The similarity with Ulips ends here
under its ambit. though. Being a pension plan, ULPPs'
Insurance Regulatory and Development product construct discourages early
Authority of India (IRDAI) was withdrawals. They don't allow partial
considering cutting third-party vehicle withdrawals and if you choose to
insurance premium by 10 percent. liquidate your investments before the
Commercial vehicle owners have been policy term, you can only keep one-third
asking for a rate cut as the mandatory of the money. The balance needs to be
tax makes the vehicles expensive. They annuitised on withdrawal, (an annuity
believe that a reduction in tax rate will product pays regular income). Or, you
also help increase the insurance cover, can use the balance to buy a single-
which at present is only 50 percent of all premium pension policy. Even on
vehicles maturity, you can keep only one-third of
https://www.moneycontrol.com/news/business the corpus; the rest needs to be
/economy/gst-council-may-look-atreducing- annuitised. In NPS, you need to contribute
taxonthirdpartyinsurancepremium3286731.html
a minimum sum every year and it doesn't
allow you to liquidate all your money
INSURANCE PENSION PLANS before turning 60 years old. If you do, it
TO BE FLEXIBLE, BUT NPS annuitises 90% of the corpus, allowing
STILL CHEAPER only 10% to be taken as lump sum.
Once popular, now forgotten, pension But it allows partial withdrawals. After
plans offered by life insurance staying invested for about three years,
companies may become attractive once you can withdraw up to 25% of your
again if the latest product regulation contribution for emergencies such as
draft by the Insurance Regulatory and child's education, marriage, buying a
Development Authority of India (Irdai) is house or treatment of a critical illness
implemented. The draft makes the ailment. You can make up to three partial
design of unit-linked pension plans withdrawals during the tenure and this
(ULPPs) more flexible and puts it puts NPS a notch above ULPPs. At the time
squarely in competition with the of maturity, when you are 60 years of age,
National Pension System (NPS). But an you can keep up to 60% of the
important drawback remains: ULPPs accumulated corpus and annuitise the
continue to be more expensive than NPS. rest. In ULPPs, you can only pocket
We tell you how the two compare. 33.33% of the corpus.
The draft on ULPPs proposes to increase
ON PRODUCT STRUCTURE withdrawable corpus to 60% and allow
ULPPs are much like unit-linked partial withdrawals after the lock-in
06 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
period, which will make ULPPs similar to In case of NPS too, as per the G.N. Bajpai
NPS. Committee report, a 100% allocation to
equities is recommended, and PFRDA
ON INVESTMENT PATTERN has already increased the equity
ULPPs don't offer pure equity funds allocation from 50% to 75%.
because they are currently mandated to
offer a minimum non-zero positive ON COSTS
return on the investment, on maturity or Cost is the significant differentiator
on death of the policyholder. In NPS, you between the two. NPS can charge only
can invest up to 75% in equity. But this 0.01% as investment management
story is set to change for both. The draft fee—this may undergo some revision in
on ULPPs mandates capital guarantee the near future—whereas ULPPs come
only on death and not on maturity; this with a fund management charge of up to
will allow insurance companies to offer 1.35% and distribution costs of 7.5% of
more aggressive funds. “The draft has the premium in the first year and 2%
made it optional to offer capital subsequently. Under NPS, the
guarantee on maturity which would distribution fee is capped at 0.25% of the
enable customers to invest in more contributions to a maximum of ?25,000.
aggressive funds which is ideal for After factoring other sundry costs in
building corpus over a long term,” said both products as well, NPS emerges the
Manik Nangia, director marketing and winner. For example, as per the benefit
chief digital officer, Max Life Insurance illustration of an online ULPP, where the
Co. Ltd. only costs are fund management cost
07 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
and charge of capital guarantee, at an 8% corpus to an annuity rate applicable in
growth rate, an annual investment of ?1 the future is taking a huge risk,” said
lakh for 15 years will return around ?24 Suresh Sadagopan, founder, Ladder7
lakh. At the same rate of return and Financial Advisories. “I would
equal investment, NPS would return recommend not more than 20% of one's
around ?29 lakh. money in NPS and the remaining in a mix
of Public Provident Fund, exchange-
WHICH IS BETTER? traded funds and mutual funds,” he
In terms of cost and flexibility, NPS added. NPS is a low-cost product, and
emerges the clear winner and now it also that doesn't change even if the Irdai draft
has a tax advantage. “(In NPS), you get an proposals are implemented, but both
extra deduction of ?50,000 under products suffer limitations and,
Section 80C and now the 60% corpus that therefore, can't be the main vehicle for
one can withdraw is also tax-exempt. In building a retirement corpus.
fact, you also don't pay any GST (goods https://www.livemint.com/Money/oV51bbPfseI
RZ8fStJLaBP/NPS-vs-unit-linked-insurance-
and services tax) when you buy an
pension-plans-vs-ulips-What-yo.html
annuity product through NPS whereas
you pay a GST of 1.8% of the corpus when
you buy annuity through a pension plan,”
PRIVATE LIFE INSURERS POST
said Sumit Shukla, chief executive 23% GROWTH IN NEW
officer, HDFC Pension Management Co. PREMIUMS IN APRIL-
Ltd. In case of ULPPs, you are currently NOVEMBER; LIC DOWN 8%
allowed to withdraw up to 33.33% of the Private sector life insurance companies
corpus tax-free. However, according to posted a 23.2 percent growth at Rs
C.L. Baradhwaj, executive vice-president 40,197.86 crore in their new premiums
(legal and compliance) and company for April-November 2018, compared to a
secretary, Future Generali India Life year ago. Life Insurance Corporation of
Insurance Co. Ltd, if the draft proposal is India (LIC), on the other hand, posted a
implemented, even 60% of the corpus 7.9 percent YoY drop in new premium
will be tax-exempt. “Income tax collection to Rs 83,148.64 crore leading
exempts the entire commutable corpus to a mere 0.33 percent overall premium
under Irdai-approved pension policy,” growth. Life insurance collected new
he said. premiums of Rs 1.23 lakh crore for the
NPS continues to score due to low costs April-November period. For the
which over the long term can magnify individual regular premium segment, LIC
into a huge advantage, but financial saw a 30.6 percent YoY drop in first year
planners advice caution. “The annuity premium collection during the period.
income remains taxable and under both Similarly, the country's largest insurer
the products, 40% has to be annuitised. also saw a 64.7 percent YoY drop in group
This is not suitable for a retired regular premium business for the period.
individual who continues to be in the Private sector insurers saw a 9.6 percent
highest tax bracket. Plus, locking in the YoY growth in individual regular premium
08 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
collection. But, they witnessed a 49.3 of India, sources said. Besides, three
percent YoY decline in group regular insurance sector experts -- G N Bajpai,
premium collections. Among the listed Mathew Varghese and T Bhargava --
insurers, HDFC Life Insurance saw a 40 have been appointed on the selection
percent YoY premium growth at Rs panel.
8,518.69 crore. ICICI Prudential Life https://economictimes.indiatimes.com/news/e
Insurance saw a 3 percent YoY growth in conomy/policy/government-forms-panel-
under-bbb-to-select-md-for-psu-insurance-
first year premium collection to Rs
firms/articleshow/67081386.cms
5,870.03 crore. SBI Life Insurance posted
a 30.6 percent YoY growth in new
premium to Rs 7,728.44 crore during the
EY TO ADVISE ON MERGER OF
period. For the month of November alone, 3 PSU GENERAL INSURERS
the sector saw a 13 percent YoY drop in Multinational consultancy firm EY has
premium collections at Rs 14,857.77 been shortlisted to advise on the
crore. Here, LIC posted a 23 percent YoY proposed merger of three public sector
drop to Rs 9,511 crore while private general insurers as announced in this
insurers saw a 15 percent YoY increase to year's budget. The government has
Rs 5,346.76 crore in November 2018. The proposed to merge three public sector
fourth quarter that begins in January is general insurance companies --
when a majority of insurance sales are National Insurance Company, Oriental
made, since it is a tax-saving period. Insurance Company and United India
Almost 55 percent of the entire year's Insurance Company. As on March 31,
policies are sold during Q4. 2017, the three companies together had
https://www.moneycontrol.com/news/busines more than 200 insurance products with a
s/economy/private-life-insurers-post-23- total premium of Rs 41,461 crore and a
growth-in-new-premiums-in-april-november- market share of around 35 per cent.
lic-down-8-3284521.html Their combined net worth is Rs 9,243
crore with total employee strength of
GOVERNMENT FORMS PANEL around 44,000 spread over 6,000
UNDER BBB TO SELECT MD offices. The consultant is expected to
FOR PSU INSURANCE FIRMS advise on organisational restructuring,
The government has constituted a rationalisation of human resources,
seven-member panel to select management of operational issues,
managing directors of public sector regulatory and compliance issues. It is
insurance companies. According to also expected to handhold the
sources, the panel would be headed by management of the three companies,
Banks Board Bureau (BBB) chairman B P throughout the merger process till the
Sharma. The other members of the panel new organisation is formed and set in
are Financial Services Secretary, place.
Department of Public Enterprises Finance Minister Arun Jaitley in the
Secretary and Chairman of Insurance Budget speech had announced that the
Regulatory and Development Authority three companies would be merged into a
09 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
single insurance entity. The process of verification of mParivahan QR Code is
merger is likely to be completed during also available on this platform. The
the current fiscal. The profitability of enforcement agencies can also carry out
many general insurance companies complete challaning operation including
including the state-owned ones has tagging of driving licence or registration
been under pressure owing to rising certificate for impounding or suspension
underwriting losses and higher claims. of a vehicle. The Ministry has urged
In 2017, state-owned New India states and Union Territories to adopt the
Assurance Company and General SOP in compliance with the provisions of
Insurance Corporation of India were Rule 139 of the Central Motor Vehicles
listed on bourses. Initial estimates Rules, 1989.
suggest that the combined entity formed https://www.financialexpress.com/auto/car-
by merging the three insurers will be the news/no-need-to-carry-driving-license-rc-
insurance-says-govt-but-heres-the-
largest non-life insurance company in
catch/1418363/
India, valued at Rs 1.2-1.5 lakh crore.
https://www.moneycontrol.com/news/busines
s/companies/ey-to-advise-on-merger-of-3- NEED TO MINIMISE FRAUD IN
psu-general-insurers-3295601.html POLICIES: LIFE COUNCIL
There is a need to minimise the risk of
NO NEED TO CARRY DRIVING fraud in life insurance policies, as stated
LICENSE, RC, INSURANCE SAYS by the secretary general of the Life
GOVT Insurance Council. V Manickam of the
The Ministry of Road Transport & Life Council stated that steps are being
Highways issued a Standard Operating taken by the industry to identify frauds.
Procedure (SOPs) to make sure that Manickam added that the assistance of
vehicle owners are not required to carry Insurance Information Bureau of India is
documents like certificate of also being taken to identify and help
registration, insurance, fitness and curb fraud. With respect to frauds, the
permit, driving licence or certificate for panel at the event said there is a need to
pollution in physical form. So, from now eliminate such instances at the
on, motorists may not be required to underwriting stage itself. Insurers are
carry these documents in hard copy already taking the assistance of data
format now. People can produce the from credit information companies to
documents in electronic form through minimise frauds. Further, some life
DigiLocker or mParivahan app. From the insurers are also experimenting with
apps, driving licence or registration fraud detection on an instant basis.
certificate can be downloaded on to For instance, at the time of accepting a
mobile phones. The enforcement new proposal, an insurance company
agencies can simultaneously access could get real-time data on past records
these details from eChallan app, which of such individuals. This data could be
has data for online verification of vehicle used to take a decision. In terms of the
and its licence status. Off-line fraud, in FY18 about 49 percent of the
total number of frauds were perpetrated
10 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
by intermediaries while 28 percent were HERE ARE THE TOP
by policyholders. In certain cases, DEVELOPMENTS IN THE
employees were also found to be INSURANCE SECTOR IN 2018
involved. Section 45 of the Insurance Act
that does not allow any claims to be TAX DEDUCTION BENEFITS
repudiated after three years has also FOR SENIOR CITIZENS
been a bone of contention for the The union budget increased tax deduction
industry. Companies have sought benefits for elderly people, which will offer
permission to deny fraudulent claims dual benefits to retired citizens. This
since this may impact payments to benefit include a health cover providing
honest policyholders. There is also a medical treatment expenses incurred on
proposal to get insurance companies to specified diseases for senior citizens to Rs
exchange data with each other on 1 lakh and tax savings of up to Rs 50,000
fraudulent claims so that a repository is under Section 80DDB of the Income Tax
created for such cases. This database Act at the same time.
could be used as a reference point at the Previously, a taxpayer could maximise
time of issuance of any policy. On an tax benefit under Section 80D to a total
annual basis, the industry loses about Rs of Rs 55,000 if his/her age is below 60
40,000 crore to frauds. Manickam said years, while parents' age is above 60. For
about 8.5 percent of revenue is lost to those taxpayers who are above the of
fraud by insurance companies. age 60 and are also paying health
https://www.moneycontrol.com/news/busines insurance premium for their parents, the
s/economy/need-to-minimise-fraud-in-
maximum tax benefit would be a total of
policies-life-council-official-3312381.html
Rs 60,000 under section 80D.
The table below can be referred to while
REGULATORY CHANGES KEEP
claiming tax deductions under section
INSURERS ON TOES IN 2018; 80D for FY 2018-19.
PRODUCT CHANGES WILL
DOMINATE 2019
Insurance companies witnessed a slew of
regulatory changes in the sector in 2018.
These included changes in the product
structure in life, health and motor
insurance products that impacted the
way these features were structured in the *Above age 60 refers to a senior citizen
policy. in the above context
The major changes -- both implemented LONG-TERM THIRD PARTY
and proposed -- have an impact on the MOTOR INSURANCE MADE
existing and potential policyholders. MANDATORY FOR CARS,
BIKES
The Supreme Court made it mandatory
for all car owners to take three-year
11 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
motor insurance cover and five-year offer flexible policy tenures for certain
cover for bikes, from September 1. This products. IRDAI said that insurers can
led to an immediate increase in the price design term, credit life and micro-
of motor insurance policies and hit auto insurance products that have a range of
sales since the covers were made policy tenures to choose from. However,
mandatory. Devendra Rane, Founder and these regulations would mean that
CTO at Coverfox.com stated that vehicle insurers will have to withdraw existing
owners get cover for a longer period products and re-launch new ones with
along with freedom from the hassle of appropriate features.
yearly renewals, the insurers got a
chance to rein in the lapsation ratio. AYUSHMAN BHARAT
"However, vehicle owners will have to
LAUNCHED
bear the higher outflow of premiums
The government launched the Pradhan
right at the time of purchasing their
Mantri Jan Arogya Yojana in September
vehicle," he added.
2018. Under the scheme, also called
The Insurance Regulatory and Ayushman Bharat or Modicare, about 10
Development Authority (IRDAI) also gave million families (50 million people) will
motor vehicle owners a reason to cheer. get access to Rs 5 lakh worth of health
The mandatory third-party insurance insurance free of cost. This will include
cover along with personal accident cover families from lower income groups that
for vehicle owners-drivers has been fall under the socio-economic caste
unbundled. Personal accident cover -- census (SECC) data of 2011. This will be
which was mandatory in every third- the largest such scheme in the world.
party insurance cover -- will now be
According to Dhirendra Mahyavanshi,
available as a standalone policy and you
Co-Founder of Turtlemint, "The new
only need to buy it once, as opposed to
Ayushman Bharat scheme is an initiative
for every vehicle you have owned earlier.
which has been implemented by the
Proposal to trim health insurance Government of India which addresses
exclusions the health care problem of the
Insurance Regulatory and Development economically backward class of India.
Authority of India (IRDAI) released a This scheme promises free health
report on standardisation of exclusions insurance coverage of up to Rs 5 lakh (on
in the health insurance space. On one a family floater basis) to designated
hand, this was intended to improve economically backward class
transparency in the sector, but on the individuals.”
other, there is a fear that riskier NEW CHAIRMAN IRDAI
customers would be excluded from the
CHAIRMAN
system.
In May 2018, Subhash Chandra Khuntia,
Life insurance plans to see makeover a 1981-batch Indian Administrative
In its draft regulations on life insurance Services (IAS) officer and former
products released in November, IRDAI Karnataka chief secretary, was
has said that companies will be able to
12 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
appointed as IRDAI chairman for three within a close group of customers to get
years. The post was vacant for over two their views and to ascertain the
months after TS Vijayan's tenure came to commercial viability of the product.
an end on February 21. The first task for
Khuntia was to look into the deal where NEW CAPITAL NORMS
Life Insurance Corporation of India (LIC) In the future, insurance companies will
was to hold majority stake in IDBI Bank. have to maintain capital depending on
IRDAI cleared the deal. the type of business that they write. This
will be called risk-based capital (RBC)
WHAT TO EXPECT IN 2019 regime. If a company writes riskier
The year 2019 is expected to bring out business, they will have to maintain
more technology-linked products into more capital in their reserves. IRDAI is
the insurance sector. Here is a look at the expected to bring out a detailed timeline
top trends for 2019: on how RBC will be implemented and the
processes to be followed by insurers for
USE OF WEARABLES IN pricing each risk.
INSURANCE
Insurance companies may soon require MENTAL HEALTH INSURANCE
you to buy a fitness tracker to capture PRODUCTS TO BE WIDELY
your health status in an accurate AVAILABLE
manner. An IRDAI committee has While the Mental Healthcare Act was
recommended that insurance companies passed, offering insurance for mental
make use of activity data monitored by ailments was made mandatory by law.
fitness trackers in pricing their products. However, due to a lack of clarity on the
Although it is currently not clear if the product structure, insurers stayed away
cost of these trackers will be borne by from offering these products. In 2019,
the customer or insurance companies. If insurers could bring out products with a
the recommendations are taken on series of inclusions and exclusions. Even
board, it will mean lower premiums for therapy sessions will be covered.
people adhering to a fitter lifestyle.
DIGITISATION OF INSURANCE
INSURANCE ON PILOT MODE PRODUCTS
IRDAI will allow companies to test IRDAI may make it mandatory for
products in a particular geography, or insurance companies to offer insurance
among a set of policyholders before they policies only in a digital format. This will
are made available in the market. Using a be done through the use of insurance
sandbox method where products can be repositories where each policyholder will
tested, IRDAI Chairman Subhash Khuntia have an electronic insurance account
said that if they are successful, such with a unique identity number.
products can be filed for approval. So Currently, the number of digital
insurers may begin testing products insurance policies are very low since it is
13 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
optional for a wide category of products. licence, to SORIL Holdings and Ventures
https://www.moneycontrol.com/news/busines Limited (SHVL), at a face value for an
s/personal-finance/regulatory-changes-keep- aggregate cash consideration of Rs 5
insurers-on-toes-in-2018-product-changes-
lakh. “It has already raised around two
will-dominate-2019-3278511.html
times the requisite equity capital required
under the business plan for the next
IRDA ASKS INDIABULLS TO
threefour years,” said the company's
BRING IN RS 1,200 CRORE spokesperson. “As and when we get R1,
INVESTMENTS FOR LIFE we can infuse capital within 24 hours and
INSURANCE LICENCE all records required for this have been
The insurance regulator has asked submitted to Irda, including the details of
Indiabulls to bring in about Rs 1,200 crore the institutional investors which have
as investments to provide sufficient infused capital in IISL.” Irda has been
cushion for the life insurance business insisting on higher capital than the initial
amid the recent NBFC sell-off that hurt requirement. The last life insurance
valuations at the housing finance licence was issued in 2012 to a joint
subsidiary as well. “We have asked venture between Ergo, a Munich Re group
Indiabulls to show capital commitment of company, and the Avantha Group, an
Rs 1,200 crore before it gets the Indian business conglomerate led by
preliminary licence to start the life Gautam Thapar. The venture was called
insurance business,” said a source close off five years after receiving the
to the development at Irda. The Irda board preliminary licence. There are 24 life
is meeting on December 21 and is likely to insurance companies in the country.
clear Indiabulls Life Insurance's R1 State-run Life Insurance Corporation is
licence. This is Indiabulls' second attempt the largest. Private companies entered the
to enter the life insurance sector. Earlier, it life insurance business after 2000-2001.
had tied up with Societe Generale, but the https://economictimes.indiatimes.com/market
proposal was not pursued. “We have s/stocks/news/irda-asks-indiabulls-to-bring-
infused the life insurance company with in-rs-1200-crore-investments-for-life-
insurance-licence/articleshow/67188186.cms
around Rs 100 crore and the parent has
kept around Rs 1,200 crore of additional
capital, which it recently raised to infuse GST RATE CUT MAY BOOST
as and when we get the R1,” said a INSURANCE RENEWALS OF
company spokesperson. The parent COMMERCIAL VEHICLES
company of the applicant is Indiabulls The reduction in goods and services tax
Integrated Services Ltd (IISL). IISL is not (GST) rate for third-party motor
related to Indiabulls Housing Finance. insurance of commercial vehicles to 12
Earlier this year, Indiabulls Housing percent from 18 percent may improve
Finance had sold its 100 per cent renewal rates for the segment. Sasikumar
shareholding in Indiabulls Life Insurance Adidamu, Chief Technical Officer, Bajaj
Company Limited, presently a non- Allianz General Insurance stated that the
operational company with no business or cut in GST rates will be beneficial for the
14 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
consumers as it will result in a reduction CARLYLE-GIC SET TO
in their premium outgo. "We believe it will ACQUIRE 10% IN SBI LIFE
help the insurance industry improve INSURANCE FOR RS 5,200
penetration of motor third party
CRORE
insurance which is mandatory by law in
A consortium of US private equity firm
our country," he added. Goods carrying
Carlyle Group and Singapore's sovereign
vehicles have the highest premium outgo
wealth fund GIC is set to buy a 10 per
in the third party segment because their
cent strategic stake in SBI Life Insurance
claims ratio is high. Industry estimates
Co from BNP Paribas Cardif as the French
suggest the claims ratio in this segment
insurer looks to trim its holding in the
is almost 125 percent, meaning for every
17-year-old joint venture with State
Rs 100 collected as premium, Rs 125 is
Bank of India to meet regulatory terms
paid out as claims.
for a public float. Carlyle and GIC will buy
Third party insurance protects the shares at Rs 510-520 apiece, which is at
vehicle owner from financial liabilities a 9.2 per cent discount to the insurer's.
incurred due to accidents. If a pedestrian The total deal size comes to around Rs
or another vehicle's passenger gets 5,100-5,200 crore ($742 million),
injured or dies during a mishap by making it the second-largest transaction
vehicle X, the motor third party cover of in the sector this year. The investment
the vehicle X owner will pay for the proposal has been sent to the Insurance
damages. "The reduction in GST is not Regulatory and Development Authority
across the board but specifically for the (Irda) late last week for approval and is
third party section with respect to goods expected to get ratified in the coming
carrying commercial vehicles. While this weeks. ET in its December 18 edition
will provide relief to vehicle owners to first reported that Carlyle is emerging
some extent, it is unlikely to have any the frontrunner to acquire SBI Life shares
significant impact for insurers as it is ahead of peers such as KKR and
only the tax component which is Temasek.. The stake sale process is
changing and not the premium," as being managed by BNP Paribas, Kotak
stated by Subramanyam Brahmajosyula, Mahindra Capital and Citigroup. BNP
Head, Underwriting and Reinsurance, SBI Paribas Cardif formed the life insurance
General Insurance. However, he pointed joint venture with state-run lender SBI in
out it is too early to assess whether this 2001. SBI currently owns 62.1 per cent in
move will spur demand for commercial the company while BNP Paribas Cardif
vehicles as prices of vehicles are not holds 22 per cent. In December 2016, SBI
likely to drop. Earlier, truck owners would Life sold 3.9 per cent stake to KKR and
delay or defer insurance purchase since Temasek for around Rs 1,794 crore,
the total outgo would be higher. But with valuing the insurance giant at Rs 46,000
a 6 percent reduction in the tax rate, crore, through a pre-IPO placement of
overall premium payable will be lower. shares. Carlyle bought out GE Capital's
https://timesofindia.indiatimes.com/city/delhi
stake in SBI's credit cards business last
/class-xii-boytakesoffwithdads-car-
rs135l/articleshow/67248770.cms
year. For the 2017-18 financial year, SBI
15 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
Life's net profit increased to Rs1,150.38 rate of more than 7 per cent, the report
crore from Rs 954.65 crore a year ago, said. “This confidence of PE/VC investors
the company said in a regulatory filing. in the Indian financial services story
Total income in FY18 grew to Rs could be, in our view, further bolstered
33,760.54 crore compared to Rs by Berkshire Hathway's first investment
30,276.42 crore in the previous fiscal in India, in Paytm — a PE/VC backed
year. New business annualised premium financial services company,” as stated by
equivalent increased 26.9 per cent in Vivek Soni, Partner and National Leader
FY18 to Rs 8,540 crore from Rs 6,730 for Private Equity Services, EY India.
crore in the preceding year, it said. Deal https://economictimes.indiatimes.com/market
Street The financial services sector has s/stocks/news/carlyle-gic-set-to-acquire-10-
insbilifeinsuranceforrs5200crore/articleshow/6
emerged as a key segment of interest for
7265593.cms
private equity and venture capital
investments as deals worth $4.2 billion
were announced in the first half of this CVC EXAMINING AUDIT
year, according to a report by EY and REPORTS OF PSU BANKS,
Indian Venture Capital Association. INSURERS
However, PE investors have been fighting The Central Vigilance Commission (CVC)
tough rules to back insurance ventures. is examining audit reports of state-run
Investors have to form a special purpose banks and insurance companies to check
vehicle or a limited liability partnership incidents of fraud and suggest corrective
for any deal of above 10 per cent in an measures. The move assumes
insurance venture. The fund would also significance with banks reporting large-
be automatically classified as a scale fraud cases and rising non-
promoter. Financial services witnessed performing assets (NPAs). The CVC was
28 transactions in 16 targets from 2015 getting a review done of central statutory
to the first half of this year while NBFCs reports, concurrent auditors' reports
attracted 107 PE/VC investments. Since and other auditor reports through chief
2015, the insurance sector received a vigilance officers of all public sector
total of 29 PE/VC investments, housing banks and insurance companies,
finance sector saw 18 transactions, vigilance commissioner T.M. Bhasin
payments segment had 26 deals and said. “The same (audit reports) are
fintech involved 96 deals, IVCA-EY note analysed in the Commission and a
said. Insurance alone has seen 10 corrective action plan is advised for
transactions in 2018 year to date of a time-bound implementation.” Chief
total quantum of $1.4 billion, excluding vigilance officers act as a distant arm of
the SBI deal, as per data from Venture the CVC to check corruption and other
Intelligence. Investors are betting on this fraudulent activities in an organisation.
segment as a significant section of the According to government data, various
Indian population is yet to be covered by banks reported an increase in cases of
financial services and the Indian fraud during 2015-16 to 2017-18. A
economy continues to grow at a healthy total of 8,802 frauds were reported by
16 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
scheduled commercial banks and public manufacturing and industry, agro,
sector banks in 2017-18, against 7,794 media, aviation, service and project,
in 2016-17 and 7,482 in 2015-16, discounting of cheques, trading,
according to a written reply given by the information technology, export
finance ministry in the Lok Sabha business, fixed deposits, demand loan
recently. and letter of comfort.
The Reserve Bank of India (RBI) monitors The modus operandi of these top 100
frauds reported by banks. For loans had been thoroughly analysed and
management of fraud risk and to direct various loopholes or lapses had been
the focus of banks to early detection of identified, Bhasin had said after
loan frauds, prompt reporting to RBI and releasing a report on the matter. Based
investigative agencies and timely on the findings, various industry specific
initiation of staff accountability suggestions for systemic improvement
proceedings, the central bank recently were given in the final report. The
issued a framework for dealing with loan suggestions have also been sent to the
frauds and Red Flagged Accounts (RFA). Department of Financial Services and the
Timelines have been given for action RBI in order to plug the loopholes
incumbent on banks in dealing with loan observed by the Commission, he added.
frauds of Rs 50 crore and above. https://www.livemint.com/Industry/a5RKhOOv
The red flagging is done on an PoztLhtS285GUI/CVC-examining-audit-
reports-of-PSU-banks-insurers.html
information technology platform where
all banks report large exposure to
entities/individuals so other banks can SOON, PINCODE-WISE FRAUD
be forewarned about fraud risks. In DATA TO WILL BE AVAILABLE
October, the CVC completed a first-of- TO LIFE INSURERS
its-kind analysis of top 100 banking Life will soon be more difficult for
frauds, including those in the jewellery fraudsters filing false insurance claims,
and aviation sectors, and shared its with the Insurance Information Bureau of
findings with the RBI, the Enforcement India (IIB) analysing data that will help
Directorate (ED) and the Central Bureau insurers keep a track on repeat
of Investigation (CBI), among others. offenders. Many fraudsters buy
The analysis focussed on the modus insurance policies just to file claims
operandi, amount involved, type of worth a few lakh rupees. V Manickam,
lending (viz. consortium or individual), Secretary General, Life Insurance Council
anomalies observed, loopholes that - the industry body of life insurance
facilitated perpetration of the fraud companies - stated that companies have
concerned and the systemic already shared the data with IIB. He said
improvements required to plug the gaps that they will process the data and
in the system and procedures. provide relevant information to the
The frauds were classified and analysed industry. On an annual basis, the
for 13 sectors — gems and jewellery, industry loses about Rs 40,000 crore to
frauds. Manickam said about 8.5 percent
17 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
of revenue is lost to fraud by insurance insurers have frauds where sum assured
companies. is between Rs 2 lakh to 10 lakh. Now, for
Here, the changes in underwriting would this segment and a relevant pin-code,
mean that certain pin-codes that are medical tests could be made mandatory.
prone to fraud will have a tougher Further, for cases of death claims, a
process of policy issuance and claims. thorough investigation will be done to
Pin-codes that have been shown as ascertain the identity of the deceased.
being locations of fraud in the past will https://www.moneycontrol.com/news/busines
be under the insurer's radar. s/companies/soon-pincode-wise-fraud-data-
to-will-be-available-to-life-insurers-
3328691.html
SECTION 45 OF THE
INSURANCE ACT LIFE INSURANCE
As per Section 45 of the Insurance Act, POLICYHOLDERS TO GET
no claim can be denied after three years
DIGITAL DELIGHT IN 2019
of the policy being in force. Insurers had
The advent of a new year always comes
opposed this provision of the Act saying
with promise, and 2019 has the potential
that this will encourage fraudulent
to be a very promising year for life
elements to buy policies and claims after
insurance in India. The world's fastest
three years. "Frauds have been on the
growing large economy with a
rise and there has been some misuse of
burgeoning pool of customers, strong
some provisions of the Insurance Act.
macro-economic factors and a robust
The pin-code initiative will help identify
financial ecosystem make the ideal
the problem regions and also price the
backdrop to take the life insurance
product accordingly," as stated by the
sector to the next level. The traditional
head actuary of a mid-size life insurer.
Indian family has undergone a
Section 45 was aimed at reducing the
significant evolution over the last few
claims payment time, and enable death
years. The expectations of young
claims to be settled without undue
customers from service providers are
delays.
pushing companies across sectors to
work smarter, deliver faster and engage
HOW WILL IT AFFECT better to not only be preferred but to be
POLICYHOLDERS? loved by this set.
Policyholders whose addresses feature
among the list of pin-codes prone to DIGITAL DRIVE
frauds, will face additional questions at The government's drive towards
the time of policy issuance. As per law, digitalisation and a cashless economy
insurance companies cannot deny has seen in the last few years a steady
policies on the basis of an individual movement from physical assets such as
belonging to a particular region property and gold, towards financial
/address. However, insurance companies assets. Adding further impetus, is the
can seek a compulsory medical insurance heightened awareness around insurance
for ticket-sizes prone to fraud. Most
18 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
in general, thanks to government upward. So how's this reset moment
schemes such as Aayushman Bharat for going to manifest itself for the industry?
health insurance, Pradhan Mantri Jiwan Despite a steady expected growth of 12-
Jyoti Bima Yojana (PMJJBY) for life 15% CAGR growth for the sector over the
insurance, Pradhan Mantri Suraksha last couple of years, we still see life
Bima Yojana for accidental death and insurance penetration standing only at
disability insurance and the Atal Pension 2.72%, as against a global average of
Scheme for retirement planning. This is 3.47%. What the industry will see going
moving the country towards a culture of ahead, is in my belief the holy trinity of
securing the future of one and one's life insurance: protection power,
family, which is the most fundamental consultative selling stars and digital
job of life insurance. As an industry, delight. We continue to be one of the
there has never been a greater digital most underinsured countries and the
drive to harness the power of data and “protection gap” as per some estimates
analytics, to digitise the customer's is at `489 trillion. The industry sum
journey and to enable the life insurance assured grew by 36% CAGR between
seller to work smarter and more 2001-10, however, the same grew at
efficiently. Moving way ahead of just B2C only 22% CAGR between 2010-18. This
or e-commerce, today the life insurance points to the enormous headroom to
sector is weaving on digital looms to further protect the country, and I believe
integrate the online and the offline and many insurers will be focusing on
create a beautiful fabric of seamless increasing their share of protection and
customer experience. From expanding educating customers on the need to
distribution networks, identifying protect one's family through life
individual customer needs, simplifying insurance. The agent advisor has
documentation and underwriting globally been the support pillar to any
processes and aiding agent advisors life insurer. In the coming months I
with sound advice based on would expect to see an Agent 2.0,
sophisticated analytics, AI and machine digitally enabled, more efficient and
learning, the industry is best poised now smarter in approach. The role of the
to revolutionise its processes through agent advisor will undergo a change
digital interventions. from merely being a seller of life
insurance to being a financial portfolio
REACHING CUSTOMERS manager, backed with the power of deep
On the retail front, life insurers are data analytics and equipped with the
innovating to reach out to customers at tools to save time, costs and increase
their fingertips and reduce time to issue efficiency. Digital delight is what I
a policy. I see a great scope going ahead believe will be the outcome of all the
on taking these conversations going and above. A frictionless journey for a
meaningfully engaging with customers customer from prospecting to purchase
through the tenure of their policies, so as to service and finally to claims
to drive persistency ratios further settlement is what will delight the
19 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
customer. This will only be possible health insurance scheme Ayushman
when the all three elements of the trinity Bharat will go a long way to bring the
work in tandem and synergize to take the poorer segment of the society under
industry to the next level. policy cover, he added.
https://www.financialexpress.com/money/life-
insurance-policyholders-to-get-digital-
Mathur expects health insurance sector
delight-in-2019/1430908/
to see more innovative and customised
products in coming years due to efforts
INSURANCE INDUSTRY GOES of the Irdai. HDFC Life's Executive
ON TECH DRIVE TO EXPAND Director Suresh Badami said private
COVERAGE sector has continued to gain market
Technology is the new friend in town for share in last three years and industry
insurance industry as it strives to add should continue to see growth
more customers in a country that still momentum as the regulator is taking
remains largely under-insured, after a very positive steps towards increased
year full of reforms and introduction of transparency and benefits to customers.
easier-to-understand products. The list "Insurers will introduce simpler products
of reforms undertaken in 2018 is long -- which will provide customers with the
diseases such as HIV and mental illness maximum value for their hard-earned
were brought under policy covers, long- money. The exposure draft on the new
term third-party motor insurance product regulations has been circulated
became mandatory and the government with the member companies... The
launched its ambitious scheme insurance industry at large has shared its
Ayushman Bharat that seeks to cover comments with the regulator and
almost 50 crore people. It was also a year hopefully, the recommendations would
of digitisation and launch of customer- be incorporated in the notified
friendly products as there was a rapid regulations," he said. However, he said,
growth in online channel, Canara HSBC the protection gap is a serious concern
Oriental Bank of Commerce Life that is being addressed through various
Insurance's MD and CEO Anuj Mathur financial protection products designed
said. The sectoral regulator Insurance for the changing lifestyles of Indian
Regulatory and Development Authority consumers. According to a survey, life
of India (Irdai) proposed to encourage insurance penetration in India is less
companies to develop new technologies, than 3 per cent as compared to other
asked insurers to make their products developing nations. "Insurers are
more attractive and customer friendly. making continuous efforts to address
"With increased use of digital mode... the challenge. The government has been
there was increased focus on point of taking concrete steps towards this
sale products and simple to use channels direction as well," Badami said.
to increase penetration of life insurance The private life insurance industry
products in sub-urban and rural areas," witnessed a 20 per cent compounded
Mathur said. Government's massive annual growth rate (CAGR) during the
20 - ASSOCHAM Insurance-Bulletin - Volume - 24I N D I A
year. "I expect the industry to continue to double-digit growth of the Indian
leverage the benefits from several insurance industry was aided by
initiatives it started in 2018. We will see enhanced penetration, increasingly
companies invest more in product informed and aware customers, efficient
innovations using the sandboxing distribution channels and government
platform, to offer more value-packed schemes, global insurance brokerage
products for customers," said Bajaj firm Willis Towers Watson's India Head
Allianz Life MD and CEO Tarun Chugh Rohit Jain said. The regulatory and
said. There will be robust adoption of legislative dynamism across the
technology-backed servicing initiatives spectrum of life, non-life and health
for customers, sales force and agents insurance is paving way for newer
alike. With the opening up of payment possibilities. There is a continuous
banks, small finance banks and other blurring of line between the digital and
similar partnerships, life insurance physical space, indicating the tectonic
products will reach many more Indians shift the industry will be witnessing in
and help them secure their and their the coming years, Jain said. "With a
family's future, he said. Ashish Mehrotra, healthy capital flow, the insurance
MD & CEO at Max Bupa Health Insurance, markets continued to price the risk softly
said some key trends to be watched in and generated a bit of consolidation
2019 will be greater technology activities too," he added. Bajaj Allianz
integration in health insurance products, General Insurance MD & CEO Tapan
with wearable playing a significant role. Singhel said 2018 was also a year of
Integration of wearables in health consolidation as many regulations were
insurance products will allow insurers to introduced by Irdai on motor insurance,
curate tailor-made products as per a health insurance, crop insurance which
person's current health records, thereby were focused on customer centricity and
curbing the need for pre-policy simplification of products and processes
checkups and charging premiums more for them
appropriately as per an individual. https://economictimes.indiatimes.com/industr
During the year, health insurance y/banking/finance/insure/insurance-industry-
goesontechdrivetoexpandcoverage/printarticle
policies were made more comprehensive
/67319649.cms
and easy to understand for consumers.
The industry hopes that the reform
measures taken by Irdai may come into
action within the next 12 months. The
21 - ASSOCHAM Insurance-Bulletin - Volume - 24You can also read
