The new norms, coming into force from April 1, will allow marketing of corporate products even before the regulatory approval.
"The new system would enable insurers to adapt faster to the requirements of commercial entities. All of these changes are positive, indeed path breaking," ICICI Lombard General Insurance managing director and chief executive Bhargav Dasgupta told PTI.
"We have asked the industry body General Insurance Council (GIC) to prepare the common wordings while designing covers for the corporates," New India Assurance CMD G Srinivasan, who is also the chairman of GIC, said.
According to Srinivasan, the new norms will bring in a great deal of discipline in the general insurance industry improving the financials of the industry.
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"With the stipulation that the general insurers have to operate under 100 per cent combined ratio, the industry should see rate hardening which over a period of time would ensure underwriting profits," SBI General senior vice president, marketing and product development Gunjan Ghai said.
In some of the competitive risk areas, this would likely improve the profitability of insurers as a whole, he added.
(non-motor), Bajaj Allianz General Insurance said that "the Irdai norms would facilitate insurance companies to adopt a more structured approach while designing products, pricing and diligently manage the operations of the entire product lifecycle. This change will stand in good stead for companies, as they will be able to create more innovative and need based products."
"The new norms would check under pricing as the pricing would require actuarial and technical justification that has to be approved by a product management committee, a special committee to be formed by the concerned company", he added.
"The general insurers who are already doing business in the current market will be benefited to sell new products. This will contribute growth in gross written premium for the year 2016-17," Future Generali India Insurance MD and CEO Krishnamoorthy Rao said.
However, a section of the industry is not in its favour.
"Industry is yet to mature to be empowered. In order to protect retail customers' interest, regulatory oversight is desirable at this juncture", Tata AIG General Insurance president M Ravichandran said.