Insurance companies can sell crores of policies to young professional who have joined the work force, said IRDA Chairman, T S Vijayan, during the 16th Insurance Summit organized by the Confederation of Indian Industry (CII) in Mumbai.
Addressing the summit, Vijayan said, “These young professionals have greater potential to invest their savings; hence, the insurance companies need to reach out to this segment with appropriate and innovative products.”
Meanwhile, the chairman said that the banks who wish to acquire the insurance broker license should obtain prior permission from RBI. He added that IRDA will resolve policyholders grievance.
On the issue of mis-selling, Vijayan said that it is a mismatch between expectation and delivery. He asserted, “The fundamental principle of insurance is trust. An insurance company is supposed to be the trustee of the pooled money. Hence the focus should be on the security of the customer.” He reiterated the need to improve processes in addressing policyholder’s grievance.
In order to increase insurance penetration in the rural areas, he said that insurance companies can expand their distribution force by empanelling micro insurance agents and banking correspondents. He also added that IRDA is looking to open common service centers in rural areas.
Vijayan urged insurers to increase productivity and professionalism across distribution channels. He said that distribution force must be equipped with latest technology and training.
Vijayan said that the regulator is looking to adopt cost effective processes in e-issuance of policies so as to promote web aggregator business.”
Vijayan pointed out to insurance companies the opportunity in agriculture and crop insurance as vast population of country is still engaged in agriculture and its allied activities to earn their livelihood.
Besides, he made a case for insurance companies to go public in order to enhance corporate governance and transparency.