IRDA sees sea change in insurance industry with de-tariff regime

Bangalore, Dec 20 (UNI) Insurance Regulatory and Development Authority (IRDA) Executive Director P C James today said the insurance industry will witness a big change, with the introduction of the de-tariff regime from next month and announcement of a new road map.

Addressing a seminar on De-tariff and other issues here, he said introduction of de-tariff would boost competition, underwriting discipline and bring pressure on rates leading to its stabilisation in the long run.

Mr James said the IRDA had issued guidelines to ensure that the product complied with regulations to protect the interests of policy holders by providing simple literature, pricing based on appropriate data and technical justification, insurer confirming to take necessary steps to ensure prevention of rate cutting and other improper underwriting practices on account of competition.

Stating that India presently lacked the skills for underwriting policies, he said the inusurance companies need to have their own manpower in the global context.

The seminar, conducted by the Bangalore Chamber of Industry and Commerce, focussed on the impact of de-tariff on customers and insurers, risk management and IRDA guidelines.

UNI SIV GD GM1557