To leverage the potential of the Indian insurance market and to build on the gains arising from liberalization of insurance markets, focus needs to be turned towards addressing the asymmetric information problems and the architecture that governs the processes that handle customers and customer information. Formation of a central insurance repository like the securities depository is expected to play a major role in mitigating these problems and aid in achieving rapid growth rates.

Subsequent to the liberalization of the Indian insurance market, consumers have been able to experience substantial efficiency gains arising from intense competition, new product development, improved customer service and better regulation and supervision. However, certain structural problems continue to plague the industry such that the latent potential of the Indian market lies unexploited. Some of them are:

Asymmetric information in underwriting: The presence of asymmetric information in the form of under-reporting of adverse health conditions/claim history impairs sound underwriting in the health and life insurance markets. Similar situations of asymmetric information plague motor, property and casualty insurance markets.

National Insurance Repository Limited - A Concept Paper,leverage the potential, Indian insurance market, build on the gains, arising from liberalization, insurance markets, asymmetric information, problems architecture, governs the handle customers and customer information.