The editorial Insuring policies (FE, February 20) has correctly pointed that the Indian customer is not satisfied with pure insurance products, but requires an adjunct feature of an investment or a loan. The zeal to push sales and accommodate customisation might result in a situation where the insurance companies take on more market risk rather than longevity risks, thereby increasing the costs of actuarial evaluations. From the regulatory perspective, bundled products would require oversight by multiple regulators like the Irda, Sebi and RBI. If bundling is fair game, then it might be a good idea to offer insurance linked to current and savings accounts, or pension-linked products. The industry also needs to review the model of selling insurance to customers who really have the financial wherewithal to bear the costs of contingencies on their own. The affluent are overinsured, while the really needy ones are neglected.
Sudipta Das, Kolkata