Miscellaneous Insurance :
An Overview
Renjit Gangadharan
Chair Professor (General Insurance)
NIA
Miscellaneous insurance deals with
• Traditional lines like Burglary,
• Urban nontraditional lines like
Miscellaneous Homeowners
insurance • Rural insurance,
• Liability insurance
• and does not include motor,
engineering, health, crop insurance lines
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• Small segment accounting for
roughly 15% of total General
insurance business (Remove crop –
close to 4%)
• Highly profitable.
• ICR generally around 50%
Miscellaneous • Under penetrated - Low reach and
insurance Low density
• Homeowners. Hardly 5% of the
population has taken
• Shopkeepers. Similar position.
• Others. Penetration is smaller
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• Lack of awareness of the products
• Lack of appreciation of the need for
such insurance
• Affordability issues
Reasons for low • Lack of trust on insurance
reach companies
• Complex products and procedures
• Lack of reach of insurers in towns
and villages – Tier III & IV
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Future • Very bright and full of potential
• Will drive growth of the General
insurance industry in the coming decades
• Good scope for innovation in products,
coverages and processes
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Things which need to
be done
• Simple products in personal lines
▪ First loss policies
▪ Sachet products
▪ Package policies
▪ Simple language and in vernacular
▪ Less exclusions
▪ Simple procedures
▪ Single page proposals
▪ Hassle free claims process with no or
less documentation
▪ Quick settlement Cashless settlement
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• Agents, Micro agents, POS, IMF, CSC to be
extensively used. They need to be well
trained. They need to technologically
enabled.
Distribution • Use of Bancassurance partners in
distribution of the products, extensively
using their reach
• Brokers for commercial lines
• Use of technology in distribution
• Strong digital publicity for products
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Home owners insurance
Shopkeepers Insurance
Jewellers block insurance
OPPORTUNITIES
Bankers indemnity insurance
Liability insurance
• D&O insurance
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OPPORTUNITIES
• Cyber insurance
• Title insurance
• Event insurance
• Art insurance
• Pet insurance
• Warranty insurance
• Affinity insurance
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Special features of
miscellaneous insurance
• Large number of products.
• Proposal form is a must
• Subject matter includes animate as well as
inanimate objects
• An area where there is scope for a lot of
innovation
• Historically, as a portfolio, predominantly
free from tariff except PA, BB, WC. These
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too were subsequently made tariff free.10
Classification of Misc policies
ACCORDING TO SUBJECT MATTER OF INSURANCE
Property Liability Financial Live Securities
Interest Elements
Burglary, All Risks, F.G., B.B., Stock B.B., MONEY,
J.B., etc. Brokers Ind. Etc. SBII, ETC.
Product & Public Liab., P.A., Mediclaim,
W.C., Professional Cattle, etc.
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Indemnity., etc 11
Classification of Misc policies
ACCORDING TO PERILS COVERED
Burglary Package Employee Liability Wider
Group covers Dishonesty and All
Risks
Shop keepers, Product &
House holders, Public, W.C., etc.
Office, etc.
Burglary, Money, F.G., S.B.I.I., All Risks, Special
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Overview of Miscellaneous Insurance
• Any contract of insurance other than Life/ Fire / Marine ..
• This contributes to almost 16% of the GDPI as on 31.3.2022
• Some of the traditional insurances offered in last 10 years are
• Travel insurance with lot of add ons
• Wedding insurance
• Office package policy – Single sum insured
• Different type of packaged polices
• Niche products like – policy for shopping malls
• Golf Insurance
• Multiple new covers
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Scenario
Year Total Misc Premium
2022 35516.09
2021 36689.96
Growth -3.20%
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A new product
Identification of the need
Market Research
Product Design & Evaluation
Product Launch & Promotion
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