Insurance Regulatory and Development Authority of India (IRDAI) Chairman Subhash C. Khuntia urged insurers to evaluate the prospects of coming out with products that cover job or income loss.
“The insurance industry can think of job-loss insurance, income-loss insurance that are prevalent in developed countries. We have not yet come out with such kind of viable products,” he told FICCI’s 21st annual insurance conference ‘FINCON 2020’.
Mr. Khuntia also wanted the insurers to tap the growth potential that existed by providing health and life covers to migrant workers returning to workplaces as well as general insurance policies for small and medium enterprises (SMEs).
Less than 5% of SMEs are insured, he said, adding that third-party service providers in the digital ecosystem, as a segment, also offered considerable growth opportunity for the insurers.
‘Think of common man’
“These opportunities we are losing because we are too conservative. It is good to be risk averse but insurance industry has to provide some kind of risk cover for the common people,” he said, stressing on the need for innovative products that are simple, intelligible and transparent.
“Keep your ears to the ground,” he said, pointing to the popularity of Corona Kavach and Rakshak health covers devised by IRDAI.Within a month, of their launch by health insurers, more than 15 lakh lives were covered under the two products.
Listing various measures initiated by the regulator, Mr. Khuntia urged companies to focus on risk management, maintain solvency and increase use of digital platforms to engage with customers.
Chairman of the Life Insurance Corporation of India (LIC) M.R.Kumar said the insurance industry has to be prepared for a long haul amid the raging pandemic. The focus should not be on firefighting but creating a robust risk management structure, he said.
