“The rejunivated IRDAI under the chairmanship of Mr. Debasish Panda has committed to enable ‘Insurance for All’ by 2047, where every citizen has an appropriate life, health and property insurance cover and every enterprise is supported by appropriate insurance solutions and also to make Indian insurance sector globally attractive. To attain this objective, efforts are being made towards creating a progressive, supportive, facilitative and a forward looking regulatory architecture to foster a conducive and competitive environment leading to wider choice, accessibility and affordability to policyholders. This reform agenda taken up by IRDAI derives inspiration from the Government of India’s vision of financial inclusion and strong emphasis on accelerating reforms.”
The IRDAI is preparing for the next massive reforms in the Insurance Industry after opening of the Insurance market in the year 2000. Over the years IRDAI played a regulatory role where it tried to make sure that the regulation are adhered to and the industry operates smoothly. However now the IRDAI is changing its vision from regulatory role to developmental role where it envisages increase in penetration, availability of affordable products, increase the reach, Ease the regulations, adoption of technology, more freedom to launch innovative products and so on.
IRDAI has announced number of initiatives to achieve these objectives with regular meeting with CEOs’ of Life Insurance and General Insurance Companies to chalk out the future strategy and give them target to increase penetration in designated states.
The move to dilute capital requirement for Regional, Micro Insurance players is also good approach as it will help the small regional companies to tap the strength of the local geography and reach out with tailor-made products in remotest part of the region.
IRDAI has also relaxed the tie up requirement for Intermediaries wherein they can now sell product of more insurance companies and offer customers a choice of products and services. Insurance Agents were losing customers as they were demanding more variety of products.
IRDAI has been giving a special emphasis to Insurtech companies as the insurtech market is expected to grow exponentially in coming years.
For achieving the above objectives IRDAI must also try to ensure that the whole ecosystem of Insurance industry is properly reviewed and the gaps be plugged. One of the critical area is availability of skilled manpower. In Insurance Industry currently there is dearth of skilled people in various roles. IRDAI must make it compulsory for all Insurance Companies to compulsorily spend a fixed percentage on Insurance training and development. Initially the training system for Insurance Agents was very well regulated but over the period it became diluted and training was left on Insurers itself.
Also the training institution needs to be revitalized to create industry ready person in the area of Risk Management, Underwriting, Claims, Technology, and sales.
Also the other areas of Insurance ecosystem such as risk management, fraud prevention, claim management, Prevention of misselling, Redressal of grievances must also be adequately taken into account and ensure that they help in the growth of the industry.
