Insurance Broker System Seen Ending Claim Distortion

Distortion in claim settlement in the insurance industry will be resolved with the introduction of brokers, said the insurance regulatory.

Introduction of insurance brokers has received mixed response by the industry with public sector insurance companies feeling threatened by their entry.

At the same time, the Insurance Regulatory and Development Authority (Irda) views the broker system will pave the way towards competitive pricing of products, and thereby meet the twin objectives of privatisation of the insurance sector.