The public sector general insurance companies are facing difficulties in compilation of data for preparing themselves for detariffing beginning from January 1 as they have an IT system which was put in place only recently, reports Financial Express.
''We need for a long period for fixing rates post detariffing, but our system has much shorter period data,'' said M Ramadoss, chairman and managing director, Oriental Insurance while speaking at a seminar ''Risk Summit, 2006, a pathway for competitive advantages organised by FE and Asia Insurance Post.
Cautioning about a price war Ramadoss said detariffing will test true underwriting and customer domain knowledge of the general insurers.The general insurance industry will also witness a rise in customer complains.
According to Ramadoss post-detariffing, risk mitigation awareness is to be top priority of the general insurance industry. ''Each product will be rates per se and Irda is yet to clarify whether general regulations in fire and motor will continue to apply.
