The detariffication initiative has accelerated the tempo of market imperfections into higher gear by adding new dimensions to premium acquisition efforts of insurers. While pursuing premium volumes, they have overlooked their basic role as market experts in risk management capabilities for prevention of loss occurrences and loss mitigation. The obsession with corporate premium has dissuaded them from creating new retail and rural markets. Having allowed the genie out of the bottle, the regulator has to ensure that the resultant market should be fair in competition and also consumer-beneficial.

The above topic is discussed from the perspective of a consumer of insurance. The topic lends itself to many differing views, when it is looked at from the standpoint of each stakeholder interested in the non-life insurance industry. The situation one is looking at does remain the same; but if it is perceived, in the context of the individual interests of different stakeholders, it would make a fascinating picture of one's own choice. It will be different to each party, based on the particular vision of its beholder. It is the customer's perspective that this article would be looking at.

Non-life insurance, at the best of times, is a financial safety net to those who can afford it. It is elitist in its sweep and aims to mitigate the financial losses of those that hold materials and possessions, against unforeseen events. While purchase of life insurance enables one to cover a personal risk to life, it also enables one to create an asset of his own. The creation of such a possible asset is lacking in the purchase of a non-life product. This point is made herein only to highlight that the standard that a customer normally uses in judging the utility of a non-life product is more severe; and hence greater is his price-sensitivity towards its purchase.

Insurance Chronicle Magazine, Market Imperfections, Risk Management, Rural Markets, Retail Markets, Non-life Insurance Industry, Economic System, Business Goals, Indian Market, Mediclaim Insurance, Insurance System, Insurance Regulatory Development Authority, IRDA, Corporate Governance.