Page 18 - Insurance Times April 2023

Will the

upcoming Bima

Sugam portal

Nandita Banerjee
Former Manager
be a disruptor? National Insurance Co. Ltd.

India's insurance market is valued at USD 131 billion as of now. It is also expanding at a CAGR of
17 per cent. The current trends indicate that digital penetration in India is growing and it is
contributing to growth and innovation in the insurance sector. It would not be incorrect to expect
that Insurtech will play a significant role in the future development of the domestic insurance sector.

Introduction The Bima Sugam Initiative
Propelled by the Digital India initiative and with the Covid- Reports indicate that very soon, the Insurance Regulator,
19 pandemic acting as a catalyst, India is undergoing a IRDAI, will be unveiling a one-stop online platform for policy
digital revolution. This trend has been best reflected by the sales, renewals and also claims settlements for both life and
widespread adoption of the Unified Payments Interface (UPI) non-life insurance. This on-line portal is in the making and
for digital payments. With the spread of use of smart phones will be referred to as Bima Sugam. The intention of the
and more than 600 million active internet users it is Regulator appears to be utilizing the trend of increasing
becoming easier and convenient for businesses to access digital penetration to make it convenient for customers all
potential customers. over the country to purchase insurance through the online
mode. This tech-driven portal is also expected to boost
The domestic insurance sector has also been impacted by insurance penetration in the country, which is now 4.2 per
digitisation. Not only Insurtechs but established insurers are cent as compared to a global metric of 7.40 percent. Thus,
also taking recourse to new and innovative technologies such Bima Sugam will not only be a web-aggregator with
as AI, IoT, APIs and Big Data to ramp up their offerings. government backing but also provide many additional
facilities.
India's insurance market is valued at USD 131 billion as of
now. It is also expanding at a CAGR of 17 per cent. The Customers will be able to choose from a variety of products,
current trends indicate that digital penetration in India is insurers and payment options on this platform. Both
growing and it is contributing to growth and innovation in underwriting and renewals will be possible through this
the insurance sector. It would not be incorrect to expect portal. Hence it will be of assistance to customers and help
that Insurtech will play a significant role in the future reduce some of their pain-points in the journey of insurance.
development of the domestic insurance sector. The portal will require KYC authentication which will be

16 April 2023 The Insurance Times