ItemBook Chapter

Unpacking Insurance: The Challenges and Innovations in Tying and Bundling Practices in Insurance

Title
Unpacking Insurance: The Challenges and Innovations in Tying and Bundling Practices in Insurance
Creator
P R, Anu; Sinha, Seema; R, Seranmadevi; Raju R, Pavan Kumar
Description
The insurers market share mainly depends on the channels of distribution they have adopted to make the business cost-effective. IRDAIs working paper supported the idea that the lengthier the distribution channel, the more conflict of interest there was, and it had a mediating effect. There is a chance of misrepresenting policy information, which is an outcome of that effect. In India, as per IRDAI, the incurred insurance claim ratio, the ratio of claims settlement against the total premiums received in a year, varies yearly. Even though the ratio indicates the financial performance of each sector, it can also be a benchmark for explaining the scope of the product utilization by the insured. During 202223, the ratio ranges between 72 to 86% for the general insurance companies. It also differs for the Fire, Health, motors, and marine sectors. The highest ratio is for the health sector, around 86%. At the same time, the ratio for the domestic travel insurance business is around 19%. Travel insurance is an example of bundling an insurance policy with another product. However, there is no specific information about the scope of bundling of insurance policies and the claims arising out of it. To combat these challenges, innovative solutions must be explored. One such approach is the introduction of modular insurance plans, allowing consumers to customize their coverage based on specific needs without being forced into unnecessary add-ons. AI-driven policy comparison tools can further empower consumers by offering real-time insights into the value of bundled versus standalone options. Regulatory mandates for opt-out provisions in bundled offerings can ensure greater autonomy, allowing policyholders to reject unwanted components. Additionally, the implementation of blockchain-based smart contracts can bring transparency by clearly defining coverage terms and pricing, reducing hidden costs. By adopting these solutions, the insurance sector can enhance consumer trust, encourage informed decision-making, and create a more competitive marketplace, ultimately leading to fairer and more accessible insurance options for all. The Author(s), under exclusive license to Springer Nature Switzerland AG 2026.
Source
Studies in Systems, Decision and Control;Volume;646;pp.875-884
Date
01-01-2026
Publisher
Springer Science and Business Media Deutschland GmbH
Subject
Bundling of insurance; Indian regulatory framework; Insurance policies; Policy challenges
Coverage
P R A., Department of Professional Studies, Christ University, Karnataka, Bengaluru, India; Sinha S., Department of Professional Studies, Christ University, Karnataka, Bengaluru, India; R S., Department of Professional Studies, Christ University, Karnataka, Bengaluru, India; Raju R P.K., Department of Professional Studies, Christ University, Karnataka, Bengaluru, India
Rights
Restricted Access; Hardcopy may be available in the library
Relation
ISSN: 21984182;
Format
online
Language
English
Type
Book chapter

Citation

P R, Anu; Sinha, Seema; R, Seranmadevi; Raju R, Pavan Kumar, “Unpacking Insurance: The Challenges and Innovations in Tying and Bundling Practices in Insurance,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 19, 2026, https://archives.christuniversity.in/items/show/24099.

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