The Insurance Regulatory and Development Authority (Irda) has asked over non-life insurance companies to go towards risk-based pricing.
Irda said, “Ever since we moved towards a de-tariffing regime, there is a natural compulsion on the part of non-life companies to adopt risk-based pricing”.
Insurers, though are suffering with underwriting losses post de-tariffing. Insurers are providing concession in the assortment of 80-85 per cent in fire and engineering. It is not easy to measure the underwriting impact, as risk based pricing requires strong database and also various analyses regarding pricing.
“We have reached a situation where the role of appointed actuaries has to be enhanced significantly so that general insurers are in a position to cope with public demand for non-life products and at the same time ensure the availability of solvency on a continuous basis,” Irda said.
Irda said, “Ever since we moved towards a de-tariffing regime, there is a natural compulsion on the part of non-life companies to adopt risk-based pricing”.
Insurers, though are suffering with underwriting losses post de-tariffing. Insurers are providing concession in the assortment of 80-85 per cent in fire and engineering. It is not easy to measure the underwriting impact, as risk based pricing requires strong database and also various analyses regarding pricing.
“We have reached a situation where the role of appointed actuaries has to be enhanced significantly so that general insurers are in a position to cope with public demand for non-life products and at the same time ensure the availability of solvency on a continuous basis,” Irda said.
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