CONSUMER CONCERNS
1. Insured with substandard risk would see an increase in premium and some might not be able to place the risk. A market mechanism to cover high risk insureds, have to be devised prior to de-tariff.
2. With the advent of open market, plethora of products is expected to hit the market. Unless the consumers are insurance savvy they might not be in a position to compare policies and understand the subtle differences in the policy wordings, its impact of pricing and claims payment.
2. With the advent of open market, plethora of products is expected to hit the market. Unless the consumers are insurance savvy they might not be in a position to compare policies and understand the subtle differences in the policy wordings, its impact of pricing and claims payment.
3. In the interest of the policyholders, regulators should formulate a policy guideline to create customer awareness, enable them to make informed decisions on purchasing insurance policy.
4. Policyholder might be left with a policy which does not provide required cover, or pay more premium for a coverage that is not required or policy with restricting conditions.
5.The insurance companies must be made aware of their responsibility in educating the customers about the insurance policy, its features, benefits, suitability of the product to the needs of customer.
6. Similarly regulators should devise procedures to monitor the insurance companies’ sales practices, products and its pricing and devise a suitable product disclosure mechanism to facilitate customer in making informed decision.
REGULATOR'S ROLE
1. Regulators need to review filed actuarial documents, checking accuracy of calculations, actuarial projections, and compliance with standards prescribed.
2. Prior to approval, adequacy of data and appropriateness of models and rates filed have to be tested.
3. It is recommended that rules related to reporting, filing documentation and procedures for submission, approval be devised keeping in mind, ease of use, speed of delivery, and process simplicity.
4. A stricter monitoring mechanism to ensure that the insurance companies are adhering to the rating guidelines, underwriting practices, and to determine compliance to the regulations be established.
5. A compliant mechanism to collect and resolve complaints from consumer representative,
legislative and industry regarding insurance rates, and rating activities needs to be put forth.
