IRDA asks general insurers to avoid unhealthy competitionDecember 16th, 2011 - 5:59 pm ICT by IANS
Kolkata, Dec 16 (IANS) The insurance regulator Friday asked general insurance companies not to indulge in “unhealthy competition” that has led them to incur huge losses.
“I urge the companies to look at their practices when it comes to unhealthy competition. The companies should become more responsible when they accept policies. They should not be fighting for topline at any cost,” Insurance Regulatory Development Authority of India (IRDA) Chairman J. Hari Narayan told reporters here.
There are 24 non-life insurance companies, including 4 public sector undertakings, operating in the country. These companies have incurred underwriting losses of Rs.100 billion in the last fiscal.
“What we will do is to keep maintaining the health of the companies in terms of their overall income. We should look at that very closely and to ensure that given the difficult times the companies are in a position to meet the liabilities to the policy holders,” he said.
The IRDA chairman said he hoped that the electronic platform for re-insurance companies will come up by April-May next year. On the current system, he said, “the information flow between the insurance companies and the re-insurer is not transparent”.
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