Page 407 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

product development and launches will increase the level
of insurance penetration. But all this can only be
achieved with complete de-tariffing.

At the industry level, de-tariffing will eventually lead to
an enhancement of risk assessment skills among
insurers, product innovation, better customer service and
an increase in the operational efficiencies.

As a result, customers will be able to enjoy a wider
choice of products with better risk covers. In
addition, they will see the merit in maintaining a good
profile, which translates to a favourable risk rating.

Complete de-tariffing has lead to specialization and will,
in turn, lead the Indian market to achieve global
standards in underwriting and risk management. The
impact of de-tariffing in the Indian general insurance
industry has lead to a challenging time for Indian
insurers during the 2007-2010 periods.

The combination of tough economic conditions and the
de-tariffing of the fire, motor and engineering sectors in
the Indian insurance industry has resulted in a recorded
compounded annual growth rate (CAGR) of 11.5
percent between 2007-2010, which compares with a
growth rate of 16.8 percent during 2004-2007.

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