SBI Motor Insurance Pricing Will Change In FY13

The State Bank of India (SBI) has decided to pioneer profile-based pricing of general motor insurance. This means, the cost of insurance will depend on the owner’s profile along with the age of the vehicle. The SBI’s general insurance company will take into account factors such as parking of car – whether it is parked in a covered garage or under a tree, age of the owner – middle-aged car owner or young age.

The CEO of SBI General said that the actuarial pricing requires granular data as there are several factors that can impact pricing. The company has recently launched its motor insurance products and over a short period of time it will soon place a portal for online quotes. An official from SBI said that it will also launch health insurance products starting with a plain-vanilla mediclaim plan in early FY13. SBI plans to expand its presence to 50 branches from the current 20 centers by the end of FY2013.