Insurance Services Outsourcing

The European Court of Justice ruling, that gender cannot be a risk factor in determining an insurance premium, will come into effect from December 2012. Women who have been paying lower premiums than men while buying car insurance and life insurance, whilst suffering with lower pension annuity rates, will now have to face a hike of over 25 percent. Insurance companies are now faced with the grave risk of losing women customers as a result. To sustain its women client base in motor and life insurance and grow it in the years ahead, insurance companies will have to look for newer ways to make its product pricing attractive, and introduce different products for different sorts of risks. An offshore company with the right R&A capabilities can help an insurance provider come out with a new pricing model based on a different set of risk parameters and new products designed for different categories of risk.