Low penetration of general insurance an issue: IRDA Member Non-Life

Non-life penetration that stood at 0.7 per cent of the gross domestic product (GDP) was a very low number

Low penetration of general insurance companies in terms of the non-life policies, is a major concern of the industry, said M
Ramaprasad, Member Non-Life, Insurance Regulatory and Development Authority (Irda).

Speaking at an insurance summit organised by National Insurance Academy, Pune, he added that the non-life penetration that stood at
0.7% of the gross domestic product (GDP) was a very low number. "The stagnant rate of penetration in non-life insurance is an
issue," he said.

Explaining that the general insurance premiums are expected to cross Rs 60,000 crore this year, Ramaprasad said that mis-selling of
products and customers' low knowledge of products still were issues plaguing the industry.

"Through our system of monitoring grievances, we found that about 60% of customer grievances were related to mis-selling of
products to them.

He further said that for the general insurance industry to prosper, it needed good product designers, transparency and products that are
simple to understand for the common man.