India’s insurance sector continues to witness regulatory announcements, digital initiatives, new distribution models and ambitious plans for achieving “Insurance for All by 2047.” However, the real test of regulation is not the number of circulars issued or committees constituted. It is whether consumers and intermediaries experience meaningful improvement at the ground level.
IRDAI has introduced several reforms intended to increase insurance penetration, encourage innovation and simplify business processes. Yet the regulator’s engagement with the public remains limited. Most consumers are still unaware of their policy rights, grievance mechanisms, exclusions, claim procedures and the responsibilities of insurers. Regulatory communication rarely reaches ordinary policyholders in simple, accessible language.
Intermediaries also frequently complain that representations, queries and operational difficulties do not receive timely or clear responses. Agents, brokers, surveyors, corporate agents and other distribution partners are expected to comply with increasingly complex requirements, but often struggle to obtain practical clarification from the regulator. A regulator cannot remain distant from those responsible for carrying insurance to the masses.
Several high-profile initiatives have also remained delayed or have progressed slowly. Projects announced as transformative must be judged by implementation, not presentation. Digital platforms, simplified products and inclusion programmes will achieve little if they remain largely on paper or fail to address the everyday concerns of policyholders and intermediaries.
IRDAI must therefore become more accessible, responsive and consultative. It should establish stronger public communication channels, time-bound mechanisms for responding to intermediaries, regional outreach programmes and transparent reporting on the progress of major initiatives. Consultation should not be confined to large insurers and industry bodies; smaller intermediaries and consumer representatives must also be heard.
Authored by:
Ram Gopal Agarwala
Editor-In-Chief
The Insurance Times
