Professional Documents
Culture Documents
T
he insurance indus- through industry/mutual arrange- and the insurer. The insured looks
try in India has gone ments, or passing on the risk to an at risks and impact for appropriate
through many transi- insurer. His choice depends on the treatment to mitigate and control
tions, the latest being industry players, schemes available, losses and to obtain maximum re-
the opening up of the nature and types of risks, costs in- coupment. On the other hand, the
sector to private and international volved, associated risks, probability insurer looks at risks to develop
players. With this, the monopoly of of occurrence, likely impact on busi- products and address the needs of
the public-sector nationalised insur- ness and risk appetite, the approach the insured and earn a fair return by
ance companies has been replaced and attitude. Insurance companies way of premiums that will give him
with competition—albeit in a space that recognise this and are proactive profits or surplus over and above the
regulated by the Insurance Regu- in managing and tuning their busi- claims’ settlement.
latory and Development Authoriy ness to customer needs will prove The approach of the insured is
(IRDA)—thereby giving a choice for most successful in today’s competi- from an individual perspective, and
the first time to the insured. tive environment. that of the insurer from a macro per-
Insurance, described as ‘a subject spective. Both are looking at risks
matter of solicitation,’ has now be- Insurance life-cycle and outcomes—one from the loss
come a matter of persuasion in In- perspective and the other from the
dia. The customer today can choose The life-cycle of insurance can be claims perspective. The relationship
between insuring and not insuring, viewed and analysed from two per- is mutual, symbiotic and interde-
between bearing the risk himself or spectives: the consumer (insured) pendent. It envisages a better under-