The general insurance industry is reeling under the high loss ratio in claims & most of the insurers unable to control the losses & suffering big financial losses. Solvenecy ratio of the PSU’s has also gone down from the stipulated norms, so all the stake holders including IRDA is highly concerned about controlling the losses due to various reasons.
And rightly so, IRDAI has constituted a working group to make recommendations for loss prevention and minimization in the general insurance industry.
The working group has been asked to suggest segment-wise ways and means to improve loss prevention and minimisation in insurance claims. It will also be evaluating current practices followed by the insurance industry in the area of loss prevention and minimisation and suggest approaches to synergise the activities of the various stakeholders involved in order to ensure better results. Besides, it will be giving recommendations for promoting research, education and services related to loss prevention and loss mitigation.
“While loss prevention and loss minimisation are aspects insurers are concerned with right from the time a risk is assessed to the time a claim occurs, there is a need to synergise the activities of the various stakeholders involved in these activities for the benefit of all concerned. Research and education in this area needs to be encouraged. collaboration with the government and various government agencies in this regard will benefit the society at large.
The working group has been asked to submit his report within three months of time.