Chennai, Nov 22 (UNI) Life Insurance Council, the industry body of life insurance companies in India, and the Institute of Actuaries of India (IAI) today signed an agreement to set up the Mortality and Morbidity Investigation Centre (MMIC).
According to a release here, the MMIC would function as an extended arm of the IAI and would be responsible for computing the new mortality and morbidity tables for the life insurance industry in India.
The MMIC, which would draw technical expertise from the IAI, would be funded by the Life Insurance Council.
The overhaul of the mortality and morbidity data would benefit policyholders and prospects since risk premiums would be more specific to demographic sub-sections in terms of age, occupation, and location.
Similarly incidence of morbidity-diseases could also be analysed and risk-premium tables prepared more accurately, reflecting the exposure.
The setting up of the MMIC was an important milestone in the development of life insurance, pensions, and health insurance, the release quoted Life Insurance Council Secretary General S V Mony as saying.
Given the existing low penetration of life insurance in the country, the new mortality and morbidity tables would provide more risk-based rating tables for different segments of society, he said, adding that this in turn could be expected to spread insurance faster and wider.
According to IAI President G N Agarwal, ''the proposed introduction of new mortality and morbidity database will now become a reality, with the formation of the MMIC. The data overhaul will help the industry in designing new innovative products and help expand the insurance coverage and reach across the average Indian household in the country.'' The Management and Technical Advisory Committee (MTAC) comprising experts from insurance and actuarial fields would be responsible for managing the day-to-day operations at the MMIC.
The necessary appointments would be made by the Council and the IAI to operationalise the MMIC at the earliest.
The MMIC would also have some eminent independent members nominated, as agreed between the council and the institute, the release added.