Subhash C Khuntia, chairman,IRDAI said on Thursday that the insurnace regulator has initiated a pilot project in four states to ensure motor vehicle insurance is renewed by the vehicle owners who have discontinued their policy.
This is expected to increase the premium collections in the years to come, when expanded to all states. Many vehicle owners are not renewing their vehicle insurance though they are supposed to do so after it was first insured while buying of the new vehicle, said Khuntia while inaugurating the 21st Insurance and Pensions Summit organised by the Confederation of Indian Industry (CII) on Thursday..
Khuntia hoped that the Indian Insurance sector should not think of growth rate below 15 per cent in the current fiscal.
“The Insurance sector should not think of growth rate below 15 per cent in this year. Insurance and protection are counter cyclical processes. During the current scenario in the economy, insurance should step in and provide better services to clientele,” Khuntia said.
Last year, the life insurance segment has grown by 11 per cent, general insurance segment has grown by 12 per cent and health segment has grown by 20 per cent, while standalone health insurers have grown by 37 per cent.
Khuntia exhorted the industry to promote the government schemes which are very cost-effective in the process of expanding the reach of the industry to smaller towns and rural areas. The government schemes are cost–effective because they have wider base.
“If the industry can expand its reach, it can bring down the premiums benefitting both the insured and insurer,” Khuntia added.
The regulator is also trying to bring synergies between National Pension Scheme (NPS) and industry players to expand the reach of annuities.
Khuntia invited CII to partner with IRDAI to create an ecosystem where FinTechs can collaborate with insurance companies and intermediaries to design innovative products and reach out at large.
Sanjiv Bajaj, Chairman, CII National Committee on Insurance and Pensions said that there is a need for broadening of investment opportunities by life insurers who are powerful engines of economic growth and social security. He further reiterated that there was a key need of the insurance industry to have Aadhaar based KYC so that customers can be paid claims seamlessly.