Standardised insurance cover soon: IRDAI | Economic Times

Mumbai: The insurance industry could emerge stronger by the end of the current financial year and the signs of revival are already visible, India’s insurance regulator said on Thursday, even as the sector faced growth-related challenges due to the impact of the Covid-19 pandemic on the economy.Insurance Regulatory and Development Authority of India chairman Subhash Khuntia, addressing an event organised by industry lobby group CII, also said the industry was working to introduce standardised policies for life and small businesses soon in a bid to make insurance more accessible and easier to understand. “Low sales, especially in sectors such as motor, could have an adverse impact for general insurers,” said Khuntia. “Investments, especially in government bonds, have been affected due to low interest rates. Additionally, the high claims due to the pandemic could impact the financials of the industry. We have advised the industry to cut down on expenses and maintain solvency margins.”Signs of revival are, however, now visible on the back of increased demand for health and term life products, he added. “By the end of this month (September), the companies should register positive growth. The industry will be able to wipe out the downturns caused by the pandemic by the end of FY21,” he said.Khuntia lauded the efforts of the industry, especially life insurers, in expediting the claims settlement process during the pandemic, but the low reach of insurance in the country still leaves scope for doing more, he said.The penetration of life insurance with annual premium as a percentage of gross domestic product was at about 3.7% and about 0.9% for general insurers in 2019, but they were significantly short of the global average, he pointed out.