| "In the current phase of detariffing, our focus would be on customer service and risk-based pricing within the current policy terms. We will launch new products once full detariffing takes place by April 2008," Karan Chopra, national manager, ICICI Lombard General Insurance, told Business Standard in an e-mail interview. |
| In the first phase of detariffing, which came into effect from January 1, insurance regulator Irda has given insurers flexibility to price products for the first 15 months. From April 2008, the terms and conditions will also be open for change. |
| "We will fine tune our pricing models during this time in preparation for full detariffing," he said. |
| The regulator has adopted a well planned and stable approach, giving the industry adequate time to prepare for the detariffed regime, Chopra said. |
| The company is building robust and practical rating models to arrive at the correct premium with the available data and the ongoing validation and refinement of these models would be based on the subsequent claims experience. |
| A huge dip is expected in premium collections this year as companies are likely to give up to 50 per cent discounts in certain category of policies such as fire and engineering to lure customers. There are 12 players in the general insurance industry at the moment and 2-3 new players, including Chennai-based Shriram Group, are likely to foray into non-life insurance. |
| "To retain customers in a competitive scenario, superior customer service will be a key differentiator. There will be an increase in the use of virtual channels to reach out to and service customers in order to reduce operational costs and pass on these benefits to the end customer," he said. |
| The company is also likely to make fresh investments in technology and operations, which will be the backbone for an efficient and effective business operation. ICICI Lombard collected Rs 1,835 crore in new premium during April-October of 2006-07. |
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