Page 16 - Insurance Times April 2019

Cover Story

HARSHER

PUNISHMENT

FOR

REGULATORY

VIOLATIONS IS

NOT ENOUGH

A well developed and evolved insurance sector is were really restricted. Now the spectrum has expanded and

a boon for economic development of a country.
various kinds of insurance like ransom insurance, crop
It provides long-term funds for infrastructure
insurance, etc have added to the list. This industry has
development and concurrently strengthens the
risk-taking ability of the country. Insurance is a financial developed gradually from being a nationalized industry to
allowing involvement of private players and foreign direct
product that is sold on managing unknown risks. However, investment.
thanks to aggressive practices and high incentives, over the
years insurance sales pitches have gone from pragmatic to In order to regulate the insurance business, Insurance
perilous. Insurance sector is one among those sectors which Regulatory and Development Authority was established.
have seen great growth since independence. Many insurers make the mistake of only looking internally
for opportunities of re-use. Now more than ever, however,
Regulation of insurance business dates back to 1818 with insurers can leverage the institutional knowledge of their
establishment of Oriental Insurance Company. At that time, partners to improve speed to market through business
the subject matters with which insurance sector dealt with process improvement and a more componentized approach
to product lifecycle management. New products,
About the author applications and services can often be developed and run
more quickly using new methodologies and platforms. To
Mr Jagendra Kumar is currently the achieve true speed to value, an insurer must take advantage
Corporate Head (Training) at Shriram of new technologies within the context of the legacy aspects
General Insurance Company. Mr Kumar is of their environment that still exist and, quite often, still
a prolific writer and has wide experience in provide a lot of value. By focusing on the entire product
the general insurance industry. Before
Jagendra joining SGI he was the CEO in Pearl lifecycle, insurers can ensure they're absolutely committed
Kumar to understanding their own products through the eyes of
Insurance brokers.
the consumer.
16 The Insurance Times, April 2019