No impact of de-tariffing on private insurersTotal de-tariffing, which came into effect from January 2008, has not had any impact on premium income of general insurers.
Apnainsurance.com Research Bureau
29 Feb 2008
Total de-tariffing, which came into effect from January 2008, has not had any impact on premium income of general insurers. When the industry was partially de-tariffed in April-December 2007, premium income had grown by an average of 12%. The growth rate in January 2008 is 12.48%.
Industry analysts say that this is a sign that the insurance industry is stabilizing. Competitors have not resorted to short-term price cuts to increase market share. It was widely expected that de-tariffing would lead to reducing tariffs, thus leading to lesser premium income.
There is a word of caution, though - a one-month period is too short a period to find a trend line, and subsequently market movement.