Page 44 - The Insurance Times May 2025

Case Example: Success of Inclusive Insur- 2. Parametric Insurance: Using pre-defined triggers to
simplify payouts, especially for disaster risk.
ance in India

Case Study: Agricultural Insurance in Threats
Maharashtra 1. Climate Change: Escalating risks from climate change
Maharashtra's implementation of PMFBY showcases the challenge existing insurance models.
impact of inclusive insurance:
Over 1.5 crore farmers enrolled, covering risks associ- 2. Regulatory Hurdles: Over-regulation may stifle inno-
ated with unpredictable monsoons. vation and outreach.

A dedicated grievance redressal system improved Recommendations
farmer satisfaction.
1. Enhanced Awareness Campaigns: Educate communi-
Digitized claim settlement processes reduced delays,
enhancing trust in the scheme. ties through grassroots outreach and media campaigns.
2. Leveraging Technology: Expand the use of mobile apps
Critical Analysis and AI for personalized insurance products and efficient
Strengths claims management.
1. Policy Support: Government-backed schemes provide 3. Strengthening Public-Private Partnerships: Encourage
a strong foundation for inclusive insurance. collaborations to share risks and costs, enabling prod-

2. Technology Integration: Mobile platforms and AI- uct innovation.
driven analytics streamline enrollment and claims pro-
4. Regulatory Reforms: Simplify compliance requirements
cessing.
for microinsurance products.
3. Public-Private Collaboration: Partnerships drive inno-
vative product designs and improve accessibility.
Conclusion
Weaknesses Inclusive insurance is a vital tool for achieving social and fi-
1. Adverse Selection: Lack of data on high-risk populations nancial equity. India's progress highlights the potential of
increases insurer costs. targeted schemes and technology-driven solutions. How-
ever, to bridge the remaining gaps, a concerted effort in-
2. Sustainability Concerns: High claims ratios in some seg-
ments threaten long-term viability. volving all stakeholders-government, insurers, NGOs, and
technology providers-is essential. By addressing challenges
Opportunities and fostering innovation, inclusive insurance can become a
1. Customized Products: Developing tailored products for transformative force in securing the lives and livelihoods of
specific needs like women's health or small businesses. vulnerable communities.

IRDAI Inducts Five New Members into Insurance Advisory Committee
The Insurance Regulatory and Development Authority of India (IRDAI) has appointed five prominent industry lead-
ers to its Insurance Advisory Committee (IAC) to strengthen future policy formulation and regulatory frameworks.
The newly inducted members are MR Kumar, former LIC Chairman and current Non-Executive Chairman of Bank of
India; Dinesh Kumar Khara, former Chairman of State Bank of India; Vishakha Mule, CEO of Aditya Birla Capital;
Nilesh Shah, Managing Director of Kotak Mahindra AMC; and Alice G Vaidyan, former CMD of GIC Re and current
independent director at Air India and Tata AIA Life.
The IAC advises IRDAI on important policy matters and emerging challenges. It is tasked with submitting a report
within three months.
The recommendations will be forwarded to the Finance Ministry's Department of Financial Services (DFS), which will
subsequently draft a new Insurance Bill. The upcoming legislation is expected to include key reforms such as raising
the foreign direct investment (FDI) cap to 100% and introducing composite licences.

The Insurance Times May 2025 41