India’s insurance regulator has asked insurers to slash expenses and pass on those savings to their customers, potentially helping lower policy costs in one of the world’s less penetrated but rapidly expanding markets for cover products.
The Insurance Regulatory and Development Authority of India (Irdai), in its latest published guidelines, has directed insurance companies to draw up clear plans for reducing expenses and transferring those savings to policyholders in the form of lower premiums. Irdai has sought a “well-documented policy” outlining the manner in which benefits arising from cost reductions and directly sourced business will be transferred to customers.
Source:
Economic Times
