Reported by: banking|Updated: April 3, 2019
Changes in technology and automobile environment have impacted traditional auto insurance products, says a report in Banking Frontiers. According to Anurag Rastogi, member of the Executive Management at HDFC ERGO General Insurance, the increasing adoption of digital and online technologies are steadily disrupting the Indian insurance market, giving valuable cursors to traditional business players regarding the future business trends and opening new avenues for growth.
Tarun Mathur, chief business officer at Policy Bazaar.com, believes that motor insurance in India has gone through lot of changes. There are 4 regulatory changes in the last 7 months. There are lot of disruptions happening not only inside the companies, but outside the industry which are affecting the motor insurance industry in India, says he.
He also maintains that the new age insurance companies have packaged insurance policies in a different manner – they are providing heavy discounts. In fact, price has become the most important component when customer buys an insurance and the cheapest policy has higher chance of acceptability. This revenue model is not sustainable in the long run, as the loss ratio is not supported by the discount, he says.
PRT, thus is the combination of pricing, regulation and technology, that is deeply impacting India’s insurance companies.