User:Venkat from India

Insurance Scenario in India:

India's Insurance industry is going through a period of change. While the liberalisation is still young at about 5 years, the stability of the new age insurance companies has led the regulator to ponder abolishing of tariffs in Fire, Engineering and Motor Insurances. This change is expected to happen on 1st Jan 2007.

The Insurance Industry is looking at this change with anxiety. While free pricing is imminent in free market, the industry is anxious that the tariffs of fire and property should not go while leaving the motor tariffs intact.

This would remove the cross subsidy which fire insurance premia gives for motor losses by reducing the fire rates while motor insurances rates (which should have been hiked in tune with the losses) intact.

So the industry is keeping its fingers crossed till Jan 1 2007