| The regulator has asked insurance companies to stick to standard data and eventually build a database of incidence of diseases and death rates. |
| Life insurance companies are currently using critical illness rates provided by reinsurers based on the experience of developed countries with just slight adjustments made to 'customise' the product for India. |
| This is because there is currently no benchmark 'morbidity table' available for India, said reinsurance companies executives. |
| The Irda feels that the pricing is not justified and rationalised taking into account the adjustments made and linkages to underwriting standards not being clear. |
| The regulator has referred the issue to the Actuarial Society of India to recommend reference tables, which would serve as standard reference until a morbidity table based on Indian experience is drawn up. |
| The society has proposed a standard reference for critical illness rates when it comes to pricing and valuing liabilities for insuring critical illnesses and diseases. This will help avoid inconsistencies in product pricing. |
| Meanwhile, the regulator added that it is necessary to develop a table of rates based on the Indian experience. Reinsurers feel that information to develop such a table requires at least data across a 10-year time frame. |
| The regulator has asked insurers to maintain data of policies and claims experience on a continuous basis. This has to be analysed and then furnish to the authority. |
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