Bajaj Allianz General Insurance is collecting detailed customer information which together with the claims experience will help it to arrive at the right price for health and motor insurance
TA Ramalingam, head-underwriting, Bajaj Allianz General Insurance, says motor insurance has better data availability than health insurance so far. In an interview to Moneylife, he was optimistic that health insurance, like motor insurance, will be able to offer the right price for good policyholders. Excerpts:
You mentioned about in-house data for analysis. Do you use the data from the Insurance Information Bureau (IIB), a body of the Insurance Regulatory and Development Authority (IRDA)?
We depend on management information systems and constant feedback from our in-house claims processing team (health administration team, or HAT). It sends signals based on the claims experience to help us refine the underwriting process. We do look at IIB at the macro level to crosscheck our experience, like on the top five diseases and so on.
IIB data may not be accurate. Your comments.
We may get misled if we entirely rely on it. We may end up on a different track. Some insurers may not give data in the format that is actually wanted by IIB. For example, new insurers may give data in sub ICD level rather than ICD level. (ICD stands for International Classification of Diseases.) We depend on our data analysis and just crosscheck with IIB at the macro level. The more qualitative data we get, the better it is from the business perspective. If the common insurance database is available with accurate information, it will help the industry.
You have rich data from your claims experience. How would you improve on it? New insurers have a lot of questions at the time of proposal.
New companies are capturing detailed information about customer profile and medical conditions. It helps with proper customer segmentation. Beyond a certain level, we can't just fight on price. We will be competitive with proper segmentation. The detailed data capture has to happen to offer right pricing for customers. It will happen soon in health insurance. Agents will see other agents doing it and will follow suit.
Car insurance has started capturing a lot of information at the proposal stage to offer better premium rates for good drivers compared to bad drivers.
Exactly. Motor is doing it to a great extent and health will follow it. After all, motor and health are big portfolios of general insurance. Today, the available information is not good enough. The actuaries cannot do proper pricing due to lack of complete information. Right risks should get the right price.
(The first part of this interview was published on Friday. Read, "Bajaj Allianz General Insurance: Senior citizen mediclaim product has been profitable")
Reacting to market speculation that Forster's exit could have an impact on its two brands and their turnaround, a company spokesperson said: "It would be wrong to credit Jaguar Land Rover's turnaround to Carl-Peter Forster"
New Delhi: Tata Motors today said the sudden exit of its Group CEO and managing director Carl-Peter Forster will not impact the future of Jaguar Land Rover (JLR), stating that "it would be wrong to credit" the former executive for turning around the British marquee, reports PTI.
Reacting to market speculation that Forster's exit, at a time when sales of JLR have not been encouraging, could have an impact on its two brands and their turnaround, a company spokesperson said: "It would be wrong to credit Jaguar Land Rover's turnaround to Carl-Peter Forster."
He said the turnaround in JLR commenced 24 months ago, while Mr Forster had joined Tata Motors in February 2010.
After the downturn of 2008-09, JLR made operating profit of Rs325.27 crore in the quarter ended September 2009 that propelled Tata Motors' consolidated net profit to Rs21.78 crore, as against a loss of Rs941.75 crore in the same period a year ago.
According to the spokesperson, the turnaround of JLR was "following the successful efforts made by the management team to cut costs and the successful introduction of the new Jaguar XJ and XF sedans".
"The Jaguar Land Rover business has been following the operating plans put in place after Tatas took over the business," he added.
For the first quarter ended 30 June 2011, Tata Motors group posted a net profit of Rs1,999.62 crore as compared to Rs1,988.73 crore for the quarter ended 30 June 2010.
Reacting to Mr Forster's resignation, whose exit was announced after the market hours last Friday, the Tata Motors' scrip fell 0.41% on the BSE to Rs145.35 per share.
Market watchers had pointed out that his exit has not come at the right time as JLR sales have been not so encouraging this fiscal.
In the April-July period this fiscal, sales of Jaguar Land Rover were 81,209 units, up 6%. During the period, Jaguar sales were down 26% at 15,715 units while that of Land Rover were at 65,494 units, up 18%.
When he joined Tata Motors in February 2010, Mr Forster was given the overall responsibility of Tata Motors operations globally, including Jaguar Land Rover.
It was not immediately clear how serious the accident was or whether there were any victims. The Marcoule site is located in Langedoc Roussillon, in southern France, near the Mediterranean Sea
Paris: An explosion rocked the Marcoule nuclear plant in southern France today, reports PTI quoting the country's nuclear safety body and local authorities.
It was not immediately clear how serious the accident was or whether there were any victims. The Marcoule site is located in Langedoc Roussillon, in southern France, near the Mediterranean Sea.
Evangelia Petit of the Agency for Nuclear Safety said Monday an explosion had taken place but declined to provide any further details. Officials in the Gard region confirmed Monday's explosion but also would not elaborate.
The local Midi Libre newspaper, on its website, said an oven exploded at the plant, killing one person and seriously injuring another.
No radiation leak was reported, the report said, adding that no quarantine or evacuation orders were issued for neighbouring towns.
Three other people have been hospitalized with lighter injuries in the explosion, the paper said.
The accident occurred at 11:45am (0945 GMT, 5:45am EDT) in a plant that treats nuclear waste operated by a subsidiary of France's EDF electricity company, the report said.
In Vienna, an official at the IAEA, who asked for anonymity because he was not authorized to speak on record, said the agency was in contact with French authorities "trying to learn more on the nature of the explosion."