Page 38 - Insurance Times March 2023

The General

Insurance Market

in India - Changes

Sanjay Singh
MBA (Ins), Fellow-III, DCII-London
Vs Challenges Shriram General Insurance Co Ltd

In this move the industry will get much wider products and the customers will get ample
opportunity to select the products as per their requirements but the relative challenges towards
this move is that there will again be confusion and chaos in the market with respect to the products
and will further lead to service failure in the market.

Introduction: launching the products and in entirety it was a delay process
for the Insurers. The Companies now can introduce a product
The outlook for the General Insurance Market seems very
in the market and then file with the Insurance Regulatory
positive. The industry has picked up well post pandemic and
and Development Authority of India (IRDAI) for approval.
it is expected that the growth trend will continue. The
This move will facilitate the insurance companies to design
Insurance penetration continues to remain a challenge for
and launch innovative products under all segments in a timely
the industry. While low awareness is one part, trust deficit is
manner and expand the choices available to the policyholders.
a major issue. The key to attempting to solve this by having
The rationale behind introducing the "use & file" procedure
an empathic approach is the clarion call of the time. The
for all the products is that the industry has matured hence it
technological transformation will continue to play a vital role
does not make any sense to get the regulator's prior approval
in business transformation in the coming years to come.
before launching every product.
While technology continues to play a pivotal role, the industry
The Product Management Committee is empowered to
needs to deploy digital solutions to collectively work towards
monitor the wordings and ratings of the products filed under
improving penetration of insurance in the country by adapting
Use and File mode. The new guidelines will help the industry
to customer requirements in a best suitable manner. The
to lunch the products in a faster manner side by side it requires
various changes that the Regulator and market has thrown
all the Insurers to act in a more responsible manner. In this
on the Insurers and its related challenges is the theme which
move the industry will get much wider products and the
will be highlighted in the present narration.
customers will get ample opportunity to select the products
as per their requirements but the relative challenges towards
The Use and File mode of Product filings:
this move is that there will again be confusion and chaos in
The Product approval was a time taking affair and the the market with respect to the products and will further lead
Companies were supposed to take IRDAI approval before to service failure in the market.
32 March 2023 The Insurance Times