icing and improved service," Bajaj Allianz's CEO, Swaraj Krishnan, said while addressing the seminar on Detariffing in General Insurance Sector.
"India was somewhat immune to the global underwriting cycle. With free pricing, insurers' ability to assess and rate the risk is of paramount importance," Krishnan said.
"The general insurance industry in India is undergoing a significant change from partial detariffing to total detariffing which is likely to have a major impact on insurance cost and coverage of our customers," Unison's Executive Chairman, R D Variawa, said.
The single benefit of detariffing is that it would act as an enabler in helping companies get closer to the consumer, encourage innovation and product development and offer customised risk mangement solutions, he said.
Detariffing would push the industry to become more efficient so as to reduce expenses. It would also warrant an increase in deductibles and better claims minimisations.
The big issue was that if pricing was to be done rationally, insurance companies would have to look at each line independently and that would mean an end to cross- subsidisation, which is prevalent today, he said.
