Insurance companies mull reinventing business model

MUMBAI: After higher foreign direct investment limit and more powers for the regulator, insurance companies are looking to reinvent business model to offer better customer proposition, better risk management and technology adoption to cut cost.

"New Insurance Bill has given more power to Irda and the regulator will move in one direction that is policyholder protection," said Amitabh Chaudhri MD and CEO HDFC Life at an ET edge summit,

The life insurance industry has gone through a roller coaster ride. Mis-selling or sale of dubious policies is the biggest menace.

" The biggest issue is better proposition for customers and it is difficult unless we are able to increase distribution productivity," said Anup Rau of Reliance Life.

Regulator is working on around 40 new regulations post amendment to the Act. Gaurang Shah MD and CEO of Kotak Life said that all regulations including corporate agency and expense management is soothing.

Companies talked about the need for investing into technology with the changing customer profile and behaviour. According to a recent report insurance companies will invest Rs 1,000 crore to Rs 1,300 crore over the next five years into information technology and ITes.

" We will invest into mobility and business analytics in the digital space," said Kshitij Jain MD and CEO Exide Life Insurance.