Claim settlement and grievance redressal related performance will determine the incentives of top executives of insurance companies: IRDAI
IRDAI has linked top executives' incentives to customer-centric metrics like claim settlement speed and grievance redressal.Summary
The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a significant policy shift by tying the variable pay and incentives of top insurance executives to performance metrics that directly impact policyholders. Previously, executives were rewarded primarily for growth and profits; now, a portion of their compensation will be determined by six mandatory parameters, including claim responsiveness, grievance redressal, product performance, financial soundness, and the removal of "dark patterns" in customer interactions. These parameters will collectively carry a 50% weightage in their performance assessment. To ensure transparency, insurers are now required to publicly disclose detailed data on claim settlement timelines, grievance resolution rates, and product performance on their websites without requiring users to share personal information. This move aims to empower customers by providing them with tangible data to make more informed decisions about their insurance providers.
(Source：The Economic Times)