6 min read |
The Insurance Regulatory and Development Authority of India (IRDAI) has set an ambitious goal of ‘Insurance for All’ by 2047. This vision aims to ensure that every Indian citizen has appropriate life, health, and property insurance coverage, while making the Indian insurance sector globally attractive. A pivotal “Insurance for All” Vision Meet was hosted by insurance councils on August 23rd and 24th, 2024, in Mumbai. The event brought together key stakeholders including IRDAI Chairman Debasish Panda, members of the General Insurance Council and Life Insurance Council, CEOs of General, Life, and SAHI insurance companies, and professors from IIM Kozhikode as academic partners. Here are four key focus areas that emerged from the discussions:
1. Expanding Distribution Channels
One of the primary focuses is on widening distribution channels to make insurance more accessible, particularly in underserved areas. The IRDAI has increased the tie-up limits for intermediaries, allowing Corporate Agents (CAs) to partner with 9 insurers (up from 3) and Insurance Marketing Firms (IMFs) to tie up with 6 insurers (up from 2) in each line of business. This expansion will enable policyholders to have a wider choice and better access to insurance products through various distribution channels. The area of operation for IMFs has also been expanded to cover the entire state in which they are registered, further enhancing reach.
2. Providing Affordable Insurance Products
Affordability is crucial for achieving the ‘Insurance for All’ vision. The discussions covered strategies for developing and offering affordable insurance products that cater to diverse demographics. Insurers are encouraged to leverage technology and innovation to streamline operations, reduce costs, and pass on the savings to consumers in the form of lower premiums. For example, in the life insurance sector, solvency factors for Unit Linked Business (without guarantees) have been reduced from 0.80% to 0.60%, and for PMJJBY from 0.10% to 0.05%. This change is expected to provide a relaxation in capital requirements for life insurers by around Rs. 2000 crore, potentially leading to more affordable products.
3. Integrating Advanced Technology
Innovation in insurance technology (Insurtech) was highlighted as a key factor in achieving the ‘Insurance for All’ vision. The regulatory sandbox framework has been enhanced to allow insurers and intermediaries to experiment with innovative products and technologies for up to 36 months (increased from 6 months), promoting technological solutions in the industry. This extended experimentation period, along with the move from batch-wise approvals to continuous approvals, is expected to boost innovation significantly.
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4. Enhancing Customer-Centric Approaches
The meet emphasized the importance of adopting customer-centric approaches to improve service delivery, expedite claim settlements, and swiftly resolve grievances. This focus on customer satisfaction is essential for building trust and encouraging wider adoption of insurance products across all segments of society. While specific statistics weren’t provided, the discussions highlighted the need for robust grievance redressal mechanisms and making the right products available to the right customers.
As an insurtech broker, Symbo is excited about the opportunities these focus areas present. The increased tie-up limits for intermediaries will allow us to offer a more comprehensive range of products to our customers, while the emphasis on technology and customer-centric approaches aligns perfectly with our commitment to providing seamless and efficient insurance solutions.
The ‘Insurance for All’ vision is an ambitious goal, but with the collaborative efforts of insurers, intermediaries, and regulators, we are confident that the Indian insurance sector will see significant growth and transformation in the coming years. As we work towards this vision, we remain committed to playing our part in making insurance accessible, affordable, and beneficial for all Indians by 2047.
