Insurance industry needs sustainable, profitable model: Chanda Kochhar New Information
Terming the low insurance density in the country as a "matter of concern", ICICI
Bank MD and CEO Chanda Kochhar today said the industry requires a sustainable and
profitable model for growth.
"Insurance density level in India is very low, compared to developing nations like
Brazil. Similarly, penetration across different income segments is also low," Kochhar
said at an event organised by the National Insurance Academy.
She also said cost efficiency and better use of technology, coupled with customer
focus are vital for the industry to progress in the future.
Kocchar also pointed out the need to check mis-selling of insurance products.
"There is a change in the demographics. Hence, innovative products to meet customer
needs are required. The industry needs transparent products, not just simple products.
There is also a dire need to control mis-selling, especially since insurance is
primarily sold through third-party channels," she said.
Meanwhile, the Chairman and Managing Director of General Insurance Corporation of
India (GIC Re), A K Roy also stressed the need of simple products and processes.
Similarly, joint secretary of Department of Financial Services, Arvind Kumar said
penetration of general insurance industry should be raised which is at very low
level.
"While our savings rate is one of the best in the world, our general insurance penetration
is not even one per cent. This is an area where changes need to be brought about,"
Kumar said.