23-09-2020
Regulator announces standardised insurance products to improve penetration
Insurance AlertssRegulator announces standardised insurance products to improve penetration
The IRDAI has announced a number of standardised insurance products for term life, health, residential property and small businesses, to increase insurance penetration in the country.
Standardising insurance products will help first-time buyers purchase a plan without having to pore over documents or make comparisons.
“Only 79% of four-wheelers and 36% of two-wheelers have mandatory third-party insurance. Of the total dwelling units in the country, only 0.9% are covered by insurance and 62% of healthcare expenditure is paid out of pocket,” said the IRDAI, according to a report by Times of India.
IRDAI chairman S C Khuntia, addressing an insurance conference last week, said that despite the temporary negative impact on the insurance industry of the COVID-19 pandemic, “we expect that the industry will move towards its long-term average growth rate of 12% for life, 18% for general, and 25-40% for health insurance”.
Source: Asia Insurance Review
