P800 | Programme on Motor Underwriting Skills (Non-Life)

Traditionally, there has hardly been any underwriting motor insurance business. Rates are based on static parameters including cubic capacity, place of registration of vehicle. Motor Insurance (OD & TP) is the largest segment of General Insurance business in India. Though the motor business forms a large part of the overall insurance, the fact remains that it is also a large contributor to underwriting losses. The segment has potential for further growth, given the fact, that about 60 to 70 percent of the vehicles plying on Indian roads are uninsured.

A major challenge is that motor insurance has become highly commoditized with insurers offering identical products and nearly similar claims services. The point of differentiation for insurers is thus only based on price, leading to a pricing death spiral. Hence the way the Company underwrites the motor portfolio will have a significant bearing on both top line and bottom line of the Company.

The role of underwriters must significantly change if insurers are to modernize their operations and infrastructure to avoid the race to the bottom and meet enhanced customer expectations. For practical and strategic reasons alike, underwriters have a clear and urgent opportunity to build their own future and shape the future of the industry. And, as the saying goes, the future is now.