A revolutionary decade for the insurance industry
More than five years after the Malhotra Committee recommended allowing private life insurers, the government passed the IRDA Act, which gave the regulator the power to license private companies. ICICI Pru, HDFC Standard Life, Max New York Life, Birla Sun Life, Royal Sundaram and Tata AIG were among the first movers l It’s now possible to buy a Rs 1-crore policy for a premium of a few thousand rupees
Detariffing
Non-life insurers no longer refer to their little black book to decide how much premium you need to pay for insuring your car or your property. You decide how much to pay
War on charges
Where competition did not succeed, the regulator stepped in by introducing a cap on charges insurers could apply on insurance policies
Innovation
ULIPs make an entry: Birla Sun Life, which introduced unit-linked insurance plans, also decided to make ULIPs the mainstay of its product base. The gamble paid off
Bancassurance: This French word became a part of every insurer’s lexicon after SBI Life and foreign banks demonstrated that given enough incentive, banks could
sell life insurance
Riders: Toppings were only for pizzas. That was till ULIPs came along and insurers started offering schemes where policyholders could build their plan over a basic ULIP by purchasing add-on covers called riders
Anywhere Anytime: There was a time when you needed to use influence in LIC to know your policy status. Today, most of your transactions are online
Source - economictimes.com
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Originally Posted by abhijeet06
