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Informist, Friday, Nov. 8, 2024

 

MUMBAI – The introduction of composite licence in the insurance sector can help insurers to come up with value-added products which will be beneficial for policyholders, the top management of insurance companies said during a panel discussion at the Business Standard BFSI Summit Friday. 

 

"In value-added services, you can sell other related services to the core category...health insurance related, for retirement you can offer lots of other services, which doesn't necessarily have the core component of insurance," Mayank Bathwal, chief executive officer, Aditya Birla Health Insurance said. He added the combination of services will be more attractive and help improve customer connection and engagement. 

 

Alok Rungta, managing director and chief executive officer, Future Generali India Life Insurance Ltd. said value-added services are more of a customer-oriented approach. "Today, it's transaction, it's not engagement and that's where the customer experience also changes...engagement has to be higher rather than making a transaction," he said.  

 

Earlier in the day, Insurance Regulatory and Development Authority of India Chairman Debashish Panda had said in the same event that the regulator has made suggestions to the government to consider a composite licence for insurance companies to enable them to sell different types of products under the same roof. 

 

A composite licence would allow insurance companies to provide multiple types of products, such as life, general, or health, under one roof. "For composite insurance, there is a need for amendment in the Act,...the government of India has taken up recommendations that we have made, and composite licence is one of them," Panda said. When asked about the timing of the amendment and if it can be expected in the Winter Session of Parliament, Panda said this is the government's decision to take. End

 

Reported by Ashna Mariam George and Christina Titus 

Edited by Deepshikha Bhardwaj

 

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