Some plan to gauge market mood before adding features.
In November, the IRDA had permitted general insurers to decide the terms and conditions for their products, effective from January 1.
Mumbai: With regulations allowing product differentiation by general insurers from this year, insurance companies are queuing up in front of Insurance Regulatory and Development Authority (IRDA) to get their new products approved.
Companies can now offer customised products to suit their customers’ needs.
“We are working out the add-on covers in the motor and fire insurance space that can be provided and our products are in the final stages of development,” said Mr V. Ramasaamy, Chairman cum Managing Director, National Insurance Company Ltd. The company plans to seek IRDA approval and launch the products by the last week of January.
Future Generali is planning to launch products in the motor insurance and property space in the first week of January.
“These products would add some new features such as variable depreciation to our existing products,” said Mr Deepak Sood, Chief Executive Officer of Future Generali India Insurance Company Ltd.
In November, the IRDA permitted general insurance companies to decide the terms and conditions for their products, effective from January 1.
The insurers could file for add-on covers in addition to the existing covers. The regulator had also allowed a variation in the deductibles listed in the tariffs.
Bharti Axa General Insurance also plans to bring out new products and add-on features to its existing products. “We will be introducing the products shortly after getting the necessary approvals from the regulators. The new products will be in the property, engineering, and motor segments,” said Mr S. Narayanamurty, Senior Vice -President, Underwriting and Product Development, Bharti Axa General Insurance.
However, some players are adopting a wait and watch approach and plan to gauge the market mood before introducing the products.
“Various product configurations will evolve over a period of time and it would help insurers construct their service and pricing architecture. We will wait for market feedback before adding more features to our existing products,” said Mr Sandeep Bakshi, CEO and MD, ICICI Lombard General Insurance Company.
Premiums are also likely to change along with the products. While premiums for some products could come down due to an increase in deductibles, in case of some others which already have low premiums, the premiums may rise due to enhanced coverage, Mr Bakshi said.
