Page 9 - The Insurance Times October 2025

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currently in its initial rollout phase and
Ajay Seth takes charge as IRDAI chairman amid key
will be scaled up in stages.
sector reforms
Ajay Seth officially assumed charge as the Chairman of the Insurance Regu- Insurers to conduct second
latory and Development Authority of India (IRDAI) on September 1, 2025.
A 1987-batch IAS officer from the Karnataka cadre, Seth was appointed by impact study on risk-based
the Appointments Committee of the Cabinet on July 24, 2025, for a tenure capital norms
of three years or until he turns 65, whichever is earlier.
IRDAI has asked insurers to undertake
Seth previously served as Secretary of the Department of Economic Affairs. a second Quantitative Impact Study
He succeeds Debasish Panda, whose three-year term ended in March. The (QIS 2) before implementing the pro-
appointment comes at a crucial time as the insurance industry is navigating posed Risk-Based Capital (RBC) frame-
significant regulatory changes and preparing to meet the ambitious "Insur- work, signalling a cautious and consul-
ance for All by 2047" target. tative approach to regulatory reform.
At IRDAI, Seth will oversee the rollout of major initiatives like the risk-based The RBC framework aims to align
capital and supervision frameworks, implementation of IFRS standards, and India's solvency regime with global
the launch of Bima Sugam. He will also be involved in shaping the future of standards by linking capital require-
FDI norms through the pending Insurance Amendment Bill, 2025. ments to the specific risks faced by in-
surers-such as investment, underwrit-
ing, operational, and market risks.
Bima Sugam portal The platform will also help policyhold-
ers access claim history, policy details, The new framework replaces the ex-
launched to revolutionize isting fixed-solvency margin model and
and service records digitally. IRDAI
digital insurance access aims to integrate insurers, intermedi- is seen as crucial to strengthening poli-
cyholder protection and industry resil-
The Insurance Regulatory and Devel- aries, and policyholders under a unified
ience. The data for QIS 2 must be
opment Authority of India (IRDAI) has system, promoting transparency, effi- based on actuarial valuations as of
officially launched the much-antici- ciency, and trust. March 31, 2025, and IRDAI has pro-
pated Bima Sugam portal, marking a The initiative aligns with the
significant leap in India's digital insur- vided insurers with detailed technical
ance transformation. Designed as a government's larger vision of "Insur- guidelines.
one-stop platform, Bima Sugam will ance for All by 2047." With Aadhaar- Industry leaders acknowledge that this
allow users to buy, renew, and settle based onboarding, e-KYC, and real-time may push implementation to next
insurance policies across life, health, claims processing, Bima Sugam is ex- year. A recent IMF-World Bank report
motor, and general insurance seg- pected to reduce frauds, cut costs, and praised India's progress on RBC as part
ments-cutting down paperwork and accelerate insurance penetration, es- of its broader financial sector reform
middlemen. pecially in rural areas. The platform is efforts under the FSAP.

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