Price correction needed in non-life sector, says IRDAI chairman

Says some revision in pricing is required especially in areas like insurance for natural catastrophe

Price correction is needed in the general insurance segment said TS Vijayan, chairman of Insurance Regulatory and Development Authority of India (IRDAI).

Speaking on the sidelines of the Global Conference of Actuaries organised by Institute of Actuaries of India, Vijayan said: "Some revision in pricing is required especially in areas like insurance for natural catastrophe."

With respect to distribution, he said, it should be simplified for better access. In newer channels such as Insurance Marketing Firms, he said that two to three insurance companies have begun to look at it though it has not yet taken off in a big way.

Vijayan also cautioned companies against having higher expenses which could impact returns offered to customers. He added that different forms of penalties like restriction of branch opening could be imposed if insurers exceed expense limits.