From the Editors Desk
The Insurance Times, August 2024 Issue
While the IRDAI has announced its ambitious goal of ensuring ‘Insurance for All’ by 2047, the life insurance penetration dropped marginally from 3.2 percent in 2021-22 to 3 percent in 2022-23. Non-life insurance penetration did not grow either as it remained unchanged 1 percent. “As such, India’s overall insurance penetration reduced to 4 per cent in 2022-23 from the level of 4.2 per cent in 2021-22,” according to IRDAI’s annual report.
Though target of Insurance for all by 2047 cannot said to be impossible, however achieving this goal necessitates a robust ecosystem, particularly a regulatory framework that is both efficient and supportive. Unfortunately, there are critical areas where IRDAI’s infrastructure is severely lacking and requires immediate attention.
Feedback from various intermediaries, including brokers and corporate agents, consistently highlights significant difficulties in navigating IRDAI’s processes. Obtaining licenses, filling out application and renewal forms, and managing data submissions are fraught with challenges. A common grievance is the exceedingly poor support from IRDAI, with even simple issues like password resets taking months to resolve due to a lack of response from IRDAI through phone or email.
Furthermore, the online platform used for form submissions is riddled with inefficiencies. Errors occur without any prompts or explanations, forcing users to try various methods blindly until they succeed. Previous issues, such as problems related to Java installations on computers used for filing, have compounded these frustrations. The contact number provided on the agency portal is perpetually busy, indicating a severe under-resourcing of support services.
A straightforward solution would be for IRDAI to establish a dedicated customer helpline for intermediaries, perhaps through engaging a call center to handle technical queries effectively. With substantial funds at its disposal, it is perplexing why IRDAI has not invested in upgrading its digital infrastructure to create a more user-friendly system.
Moreover, the lack of accessible contact points within IRDAI is another major concern. Visitors are not allowed to meet anyone at IRDAI’s Hyderabad office without an appointment, and securing an appointment is nearly impossible due to unresponsive email and phone communication. A dedicated helpdesk to redirect inquiries to the appropriate departments or personnel could significantly enhance the experience for intermediaries and foster a more cooperative regulatory environment.
The overwhelming feedback we receive from stakeholders across the board points to the same issues. The regulatory body must recognize these problems and take swift action to overhaul its intermediary infrastructure. This revamp is not just about upgrading technology; it’s about fostering an environment where intermediaries feel supported and valued, which is crucial for the ambitious goal of achieving full insurance penetration by 2047.
To this end, IRDAI should consider the following steps:
1. Enhance Digital Infrastructure: Invest in state-of-the-art digital platforms that are intuitive and error-free, ensuring that intermediaries can complete their tasks efficiently.
2. Establish a Dedicated Helpline: Implement a 24/7 customer support helpline to address technical issues and general queries promptly.
3. Improve Communication Channels: Ensure responsive and effective communication through phone and email, with timely resolutions to intermediary concerns.
4. Create a Helpdesk: A dedicated helpdesk at IRDAI offices to guide visitors and address their queries in real-time.
By addressing these critical areas, IRDAI can create a more supportive ecosystem for intermediaries, which is essential for driving the widespread adoption of insurance across the country. As we move forward, let us hope that IRDAI takes these necessary steps to transform its regulatory framework, thereby ensuring a brighter, more inclusive future for the Indian insurance industry.
