New Delhi: In Response to Industry Demands for Better RISK Assessment, The Insurance Security is Gearing Up for a Major Change. The General Insurance Countil Has Started Work on a Cibil-Like Credit Score System for Insurance. OnCE in Place, this System Will Help INSURERS IDENTIFY High-Risk Individuals Especially Those with A History of Fraud Who May Fat Higher Premiums or Even Denial of Coverarage, as Per Reports by Zeebushing.
The New Score Will Track a Person’s Financial Behaviour Related to Insurance Which el -Affect their Creditworthmase in the Future. This means it mayo infuense their chances of getting loves. With this more, The Insurance Sector Is Taking a Big Step Toward Creating A Risk Profile System that Coup Directly Impact Future Customers.
Insurers und this System Will Also Consider With the New System in the Worss, Insurance Buyers With a Good Credit History May Enjoy Two Key Benefits:
– Lower Premiums
– Faster, Smoother Approval Process
Earlier, Insurrs Had Called for a Dedicated CREDIT SCORE SYSTEM for the Industry to Help Expand Coverage and Curb Fraudulent Claims. Much Like How CREDIT SCORES WORK In Banking, This System Wald Help Spot Individuals Who Repledly File False Insurance Claims.
How Fraudulent Claims Hurt The Insurance Industry
Fake or Dishonest Insurance Claims Have Been A Long-Standing Issue. Every year, they:
Cost Insurance Companies Around RS 12,000 -15,000 CROR
– Make Up About 10-15 Per Cent of All Insurance Claims
– Lead to higher Premiums –honest policyholders end up Paying 18-22 Per Center More
This not only causes HUGE Financial Losses but also make insurncies Costlier for Genuine Customers.
BENEFITS of a Credit Score System in Insurance
– HEST CUSTOMERS Rewarded with Smoother Approvals and Lower Premiums
– Reduced Fraudulent Claims, Makeing the System More Relief
– Improved Reach As Insurers Can Confidently Expand Coveage
More Stable Premium Rates for everyone
Who Makes Up the General Insurance Countil?
The General Insurance Countil, Set Up Under Section 64C of the Insurance Act, 1938 by Irdai, Includs Representatives from General Insurance, Health Insurance, and Reinsurrance Companies Openinging in India.
Credit Scores (T) CIBIL Score (T) Credit Scores (T) Cibil Score
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