Expect Consultation Paper On Distribution Reforms In July: IRDAI Chairman

The Chairman of Insurance Regulatory and Development Authority (IRDAI), Ajay Seth, noted that several insurance products are expected to go live on the Bima Sugam platform by the end of September.

Further, he said that a consultation paper on distribution reforms is expected to be released ahead of July end.

Driving the attention towards India's insurance sector at large, he mentioned that trust remains the biggest factor for the industry as it aims to increase accessibility.

On Bima Sugam, Seth noted that the initiative is running slightly behind schedule. This e-platform also known as the' UPI of Insurance' is expected to unify life, general, and health insurances to make it simpler for users to either buy, sell, or renew their claims.

Also Read: Gold Hovers Near 7-Month Low On Firm Treasury Yields, Fed Rate Outlook

He also said that the platform will continue to operate on a commission-based structure.

On the present-day status of the insurance landscape, he said the life insurance industry has been performing well, however, it has the potential to grow much faster.

He noted that life insurers play a unique role by providing financial protection while also managing household savings, though the sector faces intense competition on the savings side.

Coming to inclusive insurance, he stated that insurance products must be affordable, accessible and available. He stressed that awareness alone is not enough and that trust is equally critical to increasing insurance adoption.

Meanwhile, he said a part of the remuneration of insurance key managerial personnel (KMPs) should be linked to product performance, claims settlement and grievance redressal. Further, he highlighted the need to improve returns for policyholders, citing a shortage of quality long-term secure investment instruments in the market.