Page 10 - Insurance Times July 2023

IRDAI favours insurers sell-
Insurance brokers remain critical despite tech: IRDAI
ing mutual funds The insurance regulator has asked intermediaries to develop hybrid and niche

India's insurance regulator favours customer service platforms for purchasing insurance. The call for online plat-
greater freedom for insurance compa- forms comes at a time when the regulator is working on 'Bima Sugam' - an
nies to sell other products, including online insurance marketplace where all industry players will participate.
mutual funds. The financial services
IRDAIChairman, Debasish Panda has emphasised the continued importance of
space is interconnected, and a one-stop
intermediaries in the evolving insurance marketplace.
solution may offer better availability of
"With technology, there is an apprehension that would come to all of your
financial services and lead to greater
minds: Whether the market is slowly cutting the need for intermediaries... The
financial inclusion, said Debasish Panda,
answer is a big no," said Panda. "It is the expertise and insightfulness of the
chairman of the IRDAI.
broker that make them a critical link in the evolving marketplace," he said.
Panda said the regulator is also work-
According to Panda, intermediaries must develop customer service platforms
ing on an India-specific model of Risk
combining digital channels with personal advice, new products, and expertise.
Based Capital (RBC) regime for insurers
Such platforms should facilitate multiple quotes, coverage comparisons, pay-
to recognize asset-side risks and inter-
ment options, instant insurance policy downloads, and the ability to speak with
actions between various risks faced by
insurance specialists throughout the process, he said.
insurers.
Centre mulls rule changes mally low at less than 5% in the country IRDAI directs insurers to
of 1.4 billion people, signaling growth
to boost insurance sector fast-track claim process
potential for investors.
India is considering rule changes to bol- due to Biparjoy
The country allows overseas investors
ster insurance penetration in the coun-
IRDAIhas asked insurers to settle claims
to hold up to 74% stake in insurers. Glo-
try as more companies, including for-
in the states affected by cyclone
eigners, line up to enter the segment. bal firms such as American Interna-
Biparjoy in an expeditious manner. In a
tional Group Inc. and Prudential Finan-
"Proposals for amendments to insur- circular to CEOs of all general insurance
cial Inc already have a presence in In-
ance laws include rationalized capital companies, and standalone health in-
dia through their local partners.
requirements, composite registration, surance companies, IRDAIsaid it needs
one-time registration for intermediar- Four new firms have entered the to be ensured that all claims are sur-
ies, value-added services by insurers, nation's insurance sector in the last veyed immediately and claim pay-
and sale of other financial products," year, and a few more are in various ments/on account payments are dis-
Debasish Panda, chairman of the IRDAI, bursed at the earliest and in any case
stages of enrollment, indicating the
told. not exceeding the stipulated timeline.
business environment is favorable, ac-
Insurance penetration remains abys- cording to Panda. "The insurer shall encourage the poli-
10 July 2023 The Insurance Times