IRDAI has been buzzing with activities off late. The new chairman has been quite proactive in presenting a roadmap for the industry to increase the penetration and reach out to the cross section of the society. The series of reforms are meant to give a boost to the insurance sector and remove the bottlenecks for the growth of the industry.
IRDAI was formed by several working groups that had been tasked with making a comprehensive review of the existing regulations under the aegis of Life Insurance Council and General Insurance Council, respectively.
IRDAI has permitted “use & file” procedure for a number of product segments across the life and non-life industry. Earlier, the insurers followed the “file & use” procedure, which resulted in delays in product approvals.
The introduction of new motor insurance add-on covers namely “pay as you drive” and “pay how you drive”, is expected to make own damage covers cheaper and drive more penetration.
IRDAI wants life Insurers to eye 50% premium growth in the coming 5 years. Similar targets have been given for the Non Life Industry.
IRDAI on 14.07.2022 allowed non life insurers to launch products for Agriculture products for agriculture and allied activities without its prior approval.
Post listing the share of LIC share prices has seen a steep downward trend, eroding the value for shareholders. Hopefully the prices will pick up in future. LIC should pull up its socks to revisit its whole marketing strategy as the private players are gaining ground in Digital marketing of the products whereas LIC is still heavily dependent on the Agency model.
