Page 8 - The Insurance Times November 2025

on strengthening its portfolio quality sociation (AIIEA) has strongly opposed Peerless to exit insurance
through disciplined underwriting and the government's decision to open top
risk-based pricing, especially in health management positions in public sector distribution, focus on core
and motor insurance categories. insurance companies to private sector businesses
professionals, calling it a move toward
The company also stated that it is in- Peerless General Finance and Invest-
"eventual privatisation."
vesting in technology to enhance digi- ment Company Ltd (PGFI) plans to exit
tal servicing, streamline claim process- In a statement, the AIIEA said, "Open- its insurance distribution business
ing, and improve policyholder engage- ing the top-most positions to outsiders within a year, Managing Director
ment. Management expressed opti- from the private sector will demoralise Jayanta Roy said. The company will
mism about stronger performance in officers and strikes at the ethos of seek regulatory approval from the In-
the second half of the fiscal, driven by nationalisation, which ensures that surance Regulatory and Development
higher festive demand, expansion in banking and insurance serve public in- Authority of India (IRDAI) by Decem-
Tier 2 and Tier 3 cities, and improved terest rather than private profit." The ber 2025.
distribution tie-ups. government recently allowed one of
PGFI will sell its insurance distribution
Chola MS is also exploring product in- the four Managing Director (MD) po- arm, Peerless Financial Products Distri-
sitions at LIC to be open to candidates
novation in niche insurance segments bution Ltd, as part of a broader strat-
and expanding its bancassurance net- from both public and private sectors egy to focus on core sectors such as
work. With evolving customer prefer- and extended similar eligibility for treasury, healthcare, hospitality, and
ences, the company aims to build on CMD roles in state-owned non-life in- real estate. "We found that insurance
its legacy of trust while adapting to a surers. distribution is not linked to our core
fast-changing insurance landscape. The association warned that lateral operations," Roy said. The company
entry could disrupt internal career pro- aims to achieve Rs.1,000 crore in an-
Insurance employees op- gression and erode institutional stabil- nual revenue, up from Rs.812 crore in
pose private sector entry ity. It urged the government to recon- FY25.
sider the decision, saying it could Chairman Partha Sarathi
in PSU leadership roles weaken public faith in nationalised fi- Bhattacharyya said the group is invest-
The All India Insurance Employees' As- nancial institutions. ing Rs.1,100 crore in healthcare and
real estate, including Rs.500 crore for
ICICI Lombard clarifies 'material change' clause the SK Roy Institute of Oncology Ser-
won't impact health policy premiums vices near Peerless Hospital in Kolkata.
A new 250-bed hospital in Guwahati
ICICI Lombard has clarified that the recently introduced "material change" began operations this year following a
clause in its health insurance policies will not result in premium hikes or
Rs.150 crore acquisition.
changes to existing coverage. The insurer assured policyholders that the
clause is primarily a disclosure requirement, meant to ensure that custom-
ers inform the company about significant changes in health or lifestyle that India calls early warning
could affect risk assessment. systems a global public
The clarification comes after concerns were raised that the new clause good at G20 meet
might allow insurers to arbitrarily revise premiums or deny claims. ICICI
Lombard emphasised that the clause will not be applied retrospectively and India has reaffirmed its commitment to
will not affect renewals or existing policy terms for genuine customers who making early warning systems a global
continue to pay premiums regularly. public good during the G20 Ministerial
Meeting on Disaster Risk Reduction
Officials from the company explained that the clause is in line with evolving
(DRR). Principal Secretary to the Prime
regulatory guidance and global best practices. It is intended to promote trans-
parency and proper risk evaluation rather than to penalise customers. The Minister, P.K. Mishra, emphasised that
insurer has also launched awareness initiatives to educate customers about early warnings are "strategic invest-
the nature and implications of such clauses. With this clarification, ICICI ments in resilience, not technological
Lombard aims to reinforce trust among policyholders and ensure continuity luxuries."
of care without disruptions. The company reiterated its commitment to cus- He outlined India's integrated multi-
tomer-centricity and maintaining transparency in policy communication. agency architecture that connects

8 November 2025 The Insurance Times