‘Excess’: Insured, but still responsible

The National Car Insurance Bureau (NCB) offers a reward to drivers who have claim-free years, either through a discount on their renewal premium or an increase in the sum insured, depending on the type of policy. This reward is meant to encourage safe driving and reduce the number of claims filed. For the insurance industry, a lower number of claims means lower costs, which can lead to lower premiums for policyholders.

Why it matters

The NCB rewards claim-free years, which may lead to customer loyalty. However, the impact on insurance stocks is unclear, as it depends on various factors such as policy type and customer behavior.

Market impact

Transmission channels

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