Reinsurance companies are likely to minimise the length of guaranteed premium on life insurance business in India. Companies are looking at reducing the term of the risk product since availability of data is not adequate to make future assumptions on mortality.
Reduction in guaranteed premium on risk would impact the length of coverage of an individual so far as his pure term cover is concerned.
This stems from the non-availability of data in the country, thereby requiring a lot of judgement decisions till proper statistics can be provided, RGA executive vice-president Paul Nitsou said.
Reinsurance Group of America Inc (RGA) is the third global reinsurance company to have opened a liason office in India since the insurance sector was privatised. For want of proper statistics, RGA is drawing on its experience in countries like Malaysia, Indonesia and Taiwan, where it perceives similarity in risk exposure.
Nitsou pointed out that statistics available in the country is not adequate and this will be an issue that the actuarial society will try to address.
