The general insurance arm of State Bank of India has decided to forge profile-based rating of auto insurance. This means is that the insurance cost will depend on the individual just as the vehicle's age.
The company takes into consideration important factors such as whether or not the vehicle is parked in a covered garage or even under a tree. This would certainly make a difference between an adult car owner and a young owner. According to Mr. R R Belle, MD and CEO, SBI General, the actuarial pricing needs more and improved granular data because many factors can impact pricing. He also said that the entire process would be almost system driven with only a little manual intervention.
The disadvantage of such rating is that online aggregators cannot offer analogous quotes as they currently do for other private non-life corporations. SBI General, that has freshly introduced its motor insurance products, will have in position a portal for online quotes and buying of motor insurance in a few months. The corporation would also unveil its health insurance products opening with a plain-vanilla mediclaim policy in early Financial Year 2013.
As stated by Belle, one of the keystones of SBI General's tactic is its robust IT strength that has been technologically advanced with backing from its partner Insurance Australia Group (IAG). The software supports the company assess the presentation of numerous service suppliers, together with authorized service centres for cars and hospitals. In case of health insurance, IAG is also bringing in actuarial backing.
"As our IT systems, we were able to instantly classify and interact with all our consumers in Sikkim directly after the earthquake. In the same way, when Cyclone 'Thane' hit Puducherry we were able to create a list of covered in the affected area," said Belle.