In an ever-evolving global landscape, the role of insurance has become indispensable for individuals and businesses alike. As the backbone of financial security, the insurance industry plays a pivotal role in safeguarding the interests of millions. However, for this vital sector to thrive and meet the evolving needs of consumers, it requires the unwavering support of a proactive insurance regulator. A regulator that is not just competent in its duties but is also approachable, understanding, and responsive to industry stakeholders.
The insurance industry in our nation has flourished, and this growth has been fueled by the immense potential it holds. While the sector has achieved commendable milestones, it is high time we address some pressing concerns that impede its full potential. A proactive insurance regulator can act as the catalyst in driving sustainable growth, boosting customer confidence, and fostering innovation.
IRDAI has taken the new mission of Insurance for All by 2047 which will be herculean task compared to the current ratio of penetration. The whole infrastructure of Insurance Industry needs to be restructured and revamped.
Though IRDAI has taken steps to issue more license to Insurers, Intermediaries,streamlining the licensing process is imperative to attract new players and spur competition. A lengthy and convoluted licensing procedure can deter potential entrants, limiting market growth and choice for consumers. By expediting the licensing process and ensuring transparency, the regulator can attract fresh talent and encourage innovative solutions to address emerging risks.
We have been receiving lot of feedback from potential entrants about difficulties being faced in the licensing process. According to them licensing is very lengthy process with lot of delays in response by the Regulator. There are also issues while filling up the mandated online returns.
Accessibility is another key attribute a proactive regulator must embrace. Being approachable and responsive to industry stakeholders can bridge the gap between regulators and insurers. This collaborative approach will facilitate the exchange of ideas, enable timely resolution of issues, and create an environment that fosters continuous improvement.
IRDAI should have a dedicated department in head office to meet the stakeholders and understand their concerns. The regulator must adopt an open mechanism to receive feedback from stakeholders and implement best practices which may help in the growth of the industry. Also IRDAI should think of opening branch offices at 4 major metro cities to improve accessibility. Though IRDAI has started interaction with CEOs of Insurance Industry, it must also have regular dialogue with Intermediaries and their representative bodies.
IRDAI should adopt a friendly approach, fast-tracking licensing procedures, be accessible to stakeholders, so that it can empower the industry to reach new heights. It is only through this harmonious collaboration between the regulator and the insurance industry that we can achieve an ecosystem that prioritizes consumer protection, promotes innovation, and secures the financial future of our nation.
