Sanjeev Mantri,MD&CEO, ICICI Lombard General Insurance said that the penetration will not suffer even if regulator Irdai changes the commission structures to the proposed persistency-based one rather than the long-standing one of payments to distributors over the lifetime of a policy.
Mumbai:ICICI Lombard General Insurance on Monday said that the government’s move to open up the insurance sector to full foreign ownership can help make covers cheaper for the common man.
Speaking at an event to mark the company’s 25th anniversary, its managing director and chief executive Sanjeev Mantri linked it to the volumes that will come into play through higher penetration.
“The larger the pool becomes, the more efficient the cost per unit will get addressed,” Mantri told reporters at an event here.
He also said that the penetration will not suffer even if regulator Irdai changes the commission structures to the proposed persistency-based one rather than the long-standing one of payments to distributors over the lifetime of a policy.
Mantri said the “industry is aligned” on the subject of fees, which is being discussed for the last few months since Irdai went public with its thinking.
“Is there a play available on overall improving the cost of acquisition or cost of operation? I think both of them will require significant investments,” he added.
He added that as the industry achieves economies of scale, all of this will play out for sure over time. I don’t think making these changes will lessen the speed of penetration because there is a push, but the launches that we have done are also in a way to create a pool where the customer also is willing to come and pick it up themselves, and that is where the true transformation will happen,” the MD said.
Having served over 500 million customers* and settled more than 60 million claims*, the company is now shaping the next phase of protection through innovations that help customers not only recover from risks but increasingly anticipate and manage them, said Mantri.
The company launched a total of 25 innovations to mark the occasion, including a motor cyber cover to protect against cyber risks affecting connected vehicles and related financial losses, and launched some tech initiatives like an AI-powered voice platform for policy servicing, purchase, and payments.
It also launched pet insurance aimed at the growing number of ‘pet parents’. It is promising to cover medical expenses, emergencies, and wellness for the pets under the ‘paw care’ product, Mantri said.
It also launched a specialised product for women designed for different life stages of the female population. Other initiatives are focused on elevating customer experience like a digital branch at a metro station in the financial capital and also a time-assured roadside assistance with a 30-minute service commitment across 15 cities for motor cover customers.