Irdai wants companies to plug policy pricing loopholes

The Insurance Regulatory and Development Authority of India (Irdai) on Wednesday asked companies to correct pricing anomalies of policies offered to customers based on scientific analysis of claims.

"The companies need to correct aberrations that exist in terms of adequate pricing based on scientific analysis of claims," senior joint director of Irdai Suresh Mathur said.

Mathur added that this was one area "where the insurance industry needs to put in a concerted effort".

"Some of the areas we as a regulator monitor, but will be happy if the industry itself looked at them on its own," he said at an insurance seminar organised by BCCI in Kolkata.

"It's time the industry takes a serious view of the situation and brings a semblance of discipline and grace in the overall functioning of the insurance sector."

On recent reforms in the insurance sector, Mathur said the government has done its bit and the regulator is in the process of notifying them.

"Insurers will also have to meet insurance penetration targets and broaden their servicing capabilities", he suggested.