The insurance regulator wants non-life insurers to work on innovations/segmentation strategy, whereby motor third-party insurance premium paid by a person driving a car for only a couple of hours a week is lower than that for a person driving for 10 hours. Likewise, a person regularly going to a gym should pay less medical insurance premium.
Giving examples of some of the product ideas coming up in the market, Insurance Regulatory and Development Authority of India Chairman TS Vijayan said: “Suppose you are driving your car for one hour a week and somebody else is driving 10 hours a week. Why should these two persons pay the same premium?
“That (thought) process is coming up in the market. Because of the Internet of Things (IOT), policyholders cannot cheat. If such innovative products come in, then the regulator will definitely consider.”
