Page 10 - Insurance Times April 2024

would give a fillip to the offer for sale other year. So, the OFS could come any boost the government's disinvestment
(OFS). time after the roadshows which began revenues and help it achieve the unof-
Currently, the government owns an on February 19 and was scheduled to ficial target of mobilizing Rs 18,000-
85.78 per cent of GIC Re and needs to end on March 1. Last week, investor 20,000 crore via disinvestments in
outreach was completed in Singapore, FY24. So far in the current financial
reduce its stake by 10.78 percentage
Hong Kong and Dubai. This week, year, the government has received Rs
points to 75 per cent by August to
meet the minimum public roadshows are underway in New York 12,609 crore through minority stake
shareholding (MPS) of 25 percent in the and London. The roadshows, led by the sales in firms. The roadshows showcase
company. The current market value of Department of Investment and Public GIC Re's dominant domestic market
the government's 10.78 per cent stake Asset Management (DIPAM), have share of 67 per cent share gross rein-
is worth Rs 7,341 crore. If the norms representations from the Department surance premium of $4.4 billion (FY23).
are unmet by August, the government of Financial Service and GIC Re. The rest of the shares are with foreign
reinsurance branches (FRBS).
will have to extend the time for an- If the GIC OFS hits in March, it would

IRDAI launches much awaited Bima Sugam
The Insurance Regulatory and Development Authority of India (IRDAI) has approved the setting up of Bima Sugam —
an online insurance marketplace for buying, selling, and servicing insurance policies as well as settling claims. In a
press note "Regulatory Revamp: A Paradigm Shift" released on March 22, 2024, the regulator said, "The IRDAI (Bima
Sugam - Insurance Electronic Marketplace) Regulations, 2024, aims to establish a Digital Public Infrastructure named
Bima Sugam towards universalization and democratization of insurance as well as empowering and safeguarding
policyholders' interests and achieve the vision of "Insurance for all by 2047." What is Bima Sugam? How is it going to
help customers?
What is Bima Sugam?
Bima Sugam is like an e-commerce platform where insurance companies can sell their products. It will onboard all
the companies that offer life and non-life insurance products under one roof. From buying insurance policies to re-
newals to claim settlement to portability to grievance redressal — Bima Sugam aims to provide an 'end-to-end' digi-
tal journey to all policyholders. IRDAI said, "This marketplace serves as a one-stop solution for all insurance stake-
holders, including customers, insurers, intermediaries, and agents, thereby, promoting transparency, efficiency, and
collaboration across the entire insurance value chain."
How is Bima Sugam going to help the customers?
Bima Sugam is all set to make your life insurance journey easier, simpler, and more affordable. No paperwork, insur-
ance in e-format Buying insurance policies now through traditional channels such as agents and brokers, starts with
filling out lengthy forms and submitting various documents.
You need to maintain those physical documents for renewals or claims later. Bima Sugam aims to eliminate the pa-
perwork as you can simply have your policy in an electronic format. When you buy a policy through Bima Sugam, soft
copies of the policy are likely to be available to you through an electronic insurance account. Insurer will have to
extend this option to both new and existing customers, according to insurance industry.
Easier access to insurance policies through a single window
With Bima Sugam, customers no longer need to keep a tab of different policies separately. They can view all their
policies — life, health and non-life insurance — in one single application or window under Bima Sugam. You can check
your policy details, and renewals dates, and raise service requests through Bima Sugam. "Bima Sugam will facilitate
servicing options for the customers from one single unified portal across policies and ease the claim settlement pro-
cess for the nominee or beneficiaries since all policies are linked and stored in one place," said Chakraborty.
Bima Sugam: Insurance policies to become more affordable
Bima Sugam is all set to make insurance policies more affordable. At present, insurance web aggregators typically
charge a fixed commission to sell insurance products. As insurance companies will sell policies directly through Bima
Sugam, the commissions paid to intermediaries are likely to be reduced, leading to lower premiums for policyholders,
according to industry officials.

10 April 2024 The Insurance Times