Stories
Bajaj General CEO Calls for Data-Driven Review of IRDAI Distribution Proposals Amidst Rising Loss Ratio
- •Bajaj General MD & CEO Tapan Singhel advocates for a data-driven discussion on IRDAI's consultation paper regarding insurance distribution reforms, including commission caps and expense of management (EoM) proposals.
- •Singhel emphasizes focusing on solutions and constructive feedback, noting the industry's loss ratio increased to 87.3% in FY26, indicating significant claims payouts to customers.
- •He suggests considering automatic price corrections in segments with consistently low loss ratios to improve customer value, rather than solely focusing on capping commissions.
- •The partnership with Swiss Re aims to provide integrated insurance solutions and global expertise for Indian companies expanding overseas, addressing complex risk management needs.
- •Singhel highlights India's vast opportunities for the insurance sector, stressing the need for sustainable business models combining scale, low margins, strong customer service, and technology within the regulatory framework.
Key Questions Answered
Bajaj General MD and CEO Tapan Singhel views the paper as a consultation rather than a final rule, urging the industry to engage in constructive, data-driven debate instead of reacting emotionally. He emphasizes examining loss ratios and claims payouts to assess true customer value.
The general insurance industry's loss ratio stood at 86.2% in fiscal year 2025 and increased to 87.3% in fiscal year 2026. From a policyholder perspective, this indicates that customers receive Rs 87.30 in claims for every Rs 100 of premium paid.
The partnership aims to help Indian companies expanding overseas manage complex risks across global markets through integrated insurance solutions. It combines Swiss Re's global risk-management and underwriting expertise with Bajaj General's strong presence in the Indian market.
