Page 57 - The Insurance Times December 2024

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IRDAI Corner

The Eighth Bima Manthan, the quarterly future resilience and global competitiveness of the insurance
meeting of IRDAI with the insurance in- industry will be built. As insurers collectively prepare for
these monumental changes, the need for robust compli-
dustry was held on 11th and 12th Novem- ance, enhanced risk management, and unparalleled trans-
ber 2024, in Hyderabad parency has never been more urgent — this is the industry's
defining moment to embrace transformation and safeguard
This edition is one of its kind where the Regulator had de- its future in an increasingly complex and dynamic global
tailed deliberations with the top brass of the insurance in- landscape.
dustry on key issues to gear up industry to be future ready This Manthan also had an important update on the status
while also aligning with global standards. This Manthan
of Bima Sugam India Federation (BSIF) which enthused the
garners importance because of the fact industry. What was once a visionary concept has now be-
that the Regulator met various Key Managerial Personnel come a tangible reality. A customer-centric innovation in the
of the Industry together, to have focused interaction on Indian insurance sector of setting up the BIMA SUGAM, a
topics of importance. Industry was represented by the Chief digital public infrastructure, it is poised to revolutionize the
Executive Officers along with their Chiefs of Finance, Tech- insurance landscape, providing citizens with the ability to
nology, Compliance, Risk and Actuarial functions. easily access, transact, and, most importantly, enhance their
Discussions delved deep into the industry's readiness, imple- overall insurance experience. A collective commitment from
mentation strategy, rollout plan, technology adoption in the the entire industry to ensure its successful implementation
key areas of Indian Risk-Based Capital (RBC) regime, Risk- is set to reshape how insurers interact with consumers, set-
Based Supervisory Framework (RBSF) and the adoption of ting a new standard of accessibility and transparency in the
International Financial Reporting Standards (IFRS) i.e. Ind insurance business.
AS. In an era where digital transformation is reshaping indus-
tries, cybersecurity has emerged as a paramount concern,
There were detailed interactions on observations of the
regulator and the experience sharing of the insurers on the with an alarming rise in cyber threats. Insurers, during these
findings of quantitative impact study (QIS) conducted to deliberations, exchanged views on the key risks facing the
implement RBC, Gap assessment done by insurers as regards industry, including vulnerabilities in IT systems, third-party
implementation of Ind AS and pilot studies carried out un- vendors, the security of cloud solutions, and the looming
der RBS framework. The observations from the RBC QIS I danger of AI-driven cyberattacks. There was dialogue on
were thoroughly reviewed, with a particular focus on what urgency of strengthening Information Systems (IS) security,
insurers can expect as the next phase unfolds. Recognizing which emerged as a critical theme to safeguard against
the profound impact of Ind AS on financial reporting, dis- evolving risks.
cussions centred around gap assessments in critical areas. Other areas reflected upon during the interactions included
Key insights from the RBSF pilot study were discussed, shed- performance of the Industry, possible areas of focus to en-
ding light on the industry's readiness and the steps required hance insurance penetration, important avenues for capi-
for successful implementation. These initiatives are not just tal augmentation like listing of insurers in the revised regu-
regulatory shifts, but the very foundation upon which the latory environment.

The Insurance Times December 2024 51