General Insurance Council Newsletter

Chairman's message Editor's connect Insurance in news Insurance Laws & policy Consumer Awareness Global Highlights Contact Us

Chairman's Message

Mr Tapan Singhel

Welcome to the December 2024 edition of our newsletter, packed with insightful updates from the insurance sector. This month, we delve into how micro policies are bolstering India’s insurance push, find out how conversational AI in insurance redefines customer engagement, the key aspects of event insurance and much more. Additionally, we cover global developments, including Malaysia’s proposed tax relief on medical and education insurance and how new energy vehicles are shaping P&C premiums in China.

We hope you find it informative.

Tapan Singhel MD & CEO
Bajaj Allianz General Insurance Company Ltd.
Chairman, GI Council

Editor's Connect Mr. Inderjeet Singh

Welcome to the 15th edition of the GI Council newsletter. The insurance sector is set to grow bigger with the sector being thrown open .Many changes are expected .Lets strive towards excellence in making insurance a delightful experience for the consumers.

”Merry Christmas and Happy New Year

Inderjeet Singh
Secretary General
General Insurance Council

Editorial Team

Ms. Vasudha Rao
Ms. Pratibha Arvind Sarathy
Mr. Sharad V Taware

Executive committee Members

Elected Members

Tapan Singhel (Chairman)
Mr. Ramaswamy Narayanan
Mr Mayank Bathwal
Mrs. Girija Subramanian

IRDAI Nominated Members

Prof. Bejon Kumar Misra
Dr Nayan Shah
Mr Milind Bhatawadekar
Mrs Asha Nair
Mr K.C. Lokessh

Regular Invitees

Mr Anup Rau Velamuri
Mr Krishnan Ramachandran
Mr Hitesh Kotak
Mr Animesh Das
Mr. R R Singh

Insurance in news

Bridging the Skills Gap Tailoring Professional Development for Women

A study by IMF shares that two-thirds or more of the world’s young people fail to reach the minimum skill levels required to compete in the international economy (Source). Today when the percentage of women who are graduating is increasing, equipping women with employable skills is a bigger challenge, as most women in India work low-skill and low-paying jobs & that too in the informal or unorganised sector.

Micro policies keep India's push for insurance coverage on track

India's push for universal insurance coverage by 2047 is being propelled by the rapid adoption of micro insurance policies, which are helping drive penetration, especially in underserved and low-income segments.

Bill to raise insurance FDI, launch composite license in winter session

The Centre may introduce a Bill to push big-ticket reforms in insurance laws in the upcoming winter session of Parliament, to further liberalise the sector. The plan is to increase the foreign direct investment (FDI) limit to 100% from 74% at present, and introduce composite licensing of life and non-life insurance, sources told FE. Among other changes that will lead to the growth of insurance penetration in the country.

Insurance Laws & policies

Insurance firm, bike owner told to pay Rs 23 lakh compensation The Motor Accident Claims Tribunal (MACT) here has directed an insurance company, rider or owner of a motorcycle to pay compensation of Rs 23.20 lakh to three minor children of Dharmender Singh, a resident of Uttar Pradesh, who died in an accident two years ago.

Combating Insurance Fraud As we enter the International Fraud Awareness Week 2024, it's an opportune moment to reflect on the critical issue of insurance fraud along with the collective efforts required to combat it. The general insurance sector is intricately linked to most of the industries, such as infrastructure, automotive, healthcare, agriculture, and society as a whole. It is pivotal in strengthening the economy by providing essential financial security to individuals and businesses. Understanding why people hesitate to buy insurance despite its advantages is crucial. Why does the industry, despite a combined ratio exceeding 100%—indicating it pays out more in claims than the premium it earns—still face scepticism about its willingness to pay claims?

Consumer Awareness

Port bank-based health policy Many banks collaborate with insurance companies to provide health insurance policies to their customers. These bank-based policies, which are typically group policies, are designed to cover a large pool of customers. Since these are group health plans with little room for personalisation, these often come at a discounted rate. However, these policies do not have any room for customisation because they are designed for a group. These policies come with standard room rent caps, sub-limits and certain specific exclusions. So they may not cater to your individual needs.

IRDAI calls for IT checks after Star, Tata AIG breach.IRDAI has asked all insurance companies to check their IT systems for vulnerabilities and take necessary precautions to protect policyholder data. The insurance regulator's advisory comes in the wake of two general insurance companies reporting data leaks. Star Health and Allied Insurance disclosed the data breach to stock exchanges, while market sources said that Tata AIG General Insurance was also impacted.

Exploring Event Insurance: A Smart Choice for Every OccasionIn a country as diverse and vibrant as India, festivals and events are more than just gatherings. From grand weddings to corporate extravaganzas, India hosts millions of events each year. Over 10 million weddings occur in India annually, with some estimates suggesting that a typical Indian family spends up to one-fifth of its wealth on weddings

Conversational AI in Insurance: Redefining Customer EngagementIn today's fast-paced, digital-first world, customer expectations are shifting rapidly, and insurance companies are under pressure to meet these demands. Conversational AI, often seen as a tool for the future, is already here, redefining how insurers interact with customers, particularly in customer support and claims servicing

Global Highlights

Malaysia: Govt proposes higher tax relief on medical and education insuranceThe Malaysian government has proposed increasing the individual income tax relief for medical expenses up to MYR10,000 ($2,318), which also covers medical and health insurance plans with co-payment features. The government has also proposed an increase in individual income tax relief on education insurance and medical and health insurance premiums from MYR 3,000 to MYR4,000. These measures were disclosed when the 2025 Budget was tabled by Prime Minister and Minister of Finance, Mr Anwar bin Ibrahim, last week.

China: New energy vehicles to support P&C premium growth but squeeze profitabilityProperty and casualty (P&C) insurers in China , which has one of the fastest-growing new energy vehicle (NEV) markets, will see a more profound credit impact from NEV adoption compared to their global peers, says Moody's Ratings. Favourable government policies and technological advancements will continue to drive strong NEV sales, and this will encourage demand for commercial (i.e. non-mandatory) motor insurance for NEVs (NEV insurance), the global credit rating agency says in a commentary titled, “China’s P&C insurance sector — China's new energy vehicle (NEV) transition supports premium growth but could pressure profitability.

General Insurance Council, Ground Floor, National Insurance Building, 12, Jamshedji Tata Road, Churchgate, Mumbai-400020, Maharashtra, India, gicouncil@gicouncil.in
https://www.gicouncil.in/
Disclaimer : Our newsletter endeavors to compile insurance information from various sources in the public domain. In respect of 3rd party articles/news items etc. reproduced, the GI Council accepts no responsibility for the accuracy/authenticity and completeness nor can be seen as endorsing the views/opinions expressed therein.