IRDAI has extended the deadline for IFRS 17 implementation to FY27, providing insurers with additional time to adapt to this international financial reporting standard. IRDAI has been continuously extending the implementation of the deadline signifying that the Industry is still not ready to adapt to the IFRS standard.
Another landmark announcement came with the launch of the Ayushman Bharat health insurance scheme for senior citizens aged 70 and above, introduced by Prime Minister Narendra Modi. The central government has extended the benefits of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to all senior citizens above the age of 70. All senior citizens who are 70 years of age and older, irrespective of their income, are now included in the scheme. Ayushman Bharat Pradhan Mantri Jan Arogya Yojana was introduced to cover bottom 40% of the Indian population. This scheme aims to offer enhanced health coverage for the elderly, focusing on increased accessibility and simplified application processes.
IRDAI Chairman recently highlighted the pressing need for more players in India’s insurance market. With only 70 insurers serving a population of 1.4 billion, there is a clear gap in penetration and accessibility. Expanding the number of insurers could enhance competition, drive innovation, and bring about wider coverage, especially in underserved regions.
IRDAI is also actively working to attract more investment. Efforts are underway to bring in additional capital, recognizing that adequate financial backing is crucial to the growth and sustainability of the sector. Several insurance companies are now in discussions with the Securities and Exchange Board of India (SEBI) to list their shares to generate more capital.
Though IRDAI is talking about efforts to increase penetration but the focussed approach for awareness and education among the masses is still missing. Penetration will not increase unless the trust deficit is reduced among the masses. An exclusive fund should be dedicated for awareness wherein all insurers may contribute. Alternatively fines collected from Insurers may be dedicated for this.
