But National Insurance Company CMD V. Ramasaamy doesn’t agree: “We should manage to rein in our expenses within 10 per cent.” The hike in third-party motor premiums and pooling of resources is intended to turn around the motor portfolio, but it might take more doing, considering the claims-to-premium ratio was an ugly 250 per cent.

In the long run, detariffing will see new policies and greater customisation, which will boost overall growth and penetration. In 2007, the focus would be on health insurance, especially small-value policies. Says Ajit Narain, chairman and managing director, Iffco-Tokio General Insurance: “We are targeting growth of about 60 per cent by launching more region-specific policies. We plan to increase the number of outlets in interiors from 60-100 by next year.” Adds Ramasaamy: “The focus will be on retail, especially health insurance and distribution through banks.” All in all, 2007 is going to be an action-packed year in the making.