The Insurance Regulatory and Development Authority of India (Irdai) is working on reforms that will lead to the goal of “insurance for all” by 2047, a visionary plan to increase insurance penetration and facilitate growth industry sustainability.
“IRDAI is continuously engaging with insurance industry stakeholders to establish a reform agenda aimed at increasing insurance penetration and facilitating sustainable industry growth,” said the IRDAI. sector body.
These reforms, among others, include promoting the ease of doing business by encouraging new insurance players, licensing niche players in insurance, relaxing renewal standards for intermediaries, certification of products by insurers, time-limited approvals, administrative flexibility, accelerated approval of investment proposals, facilitating InsurTech and distribution agility. Irdai also plans to ease regulation and reduce the compliance burden on insurers, according to the insurance body.
In addition, the need for risk and solvency capital, convergence to Ind-AS, rationalization of management expenses, development of the talent pool, updating of investment standards and the sustainable growth of the industry were also discussed. Overhauling grievance mechanisms is also on the insurance regulator’s agenda.
To close the insurance protection gap, the importance of the engagement of all stakeholders was highlighted during a meeting between Irdai and non-life and life insurance companies. It was also proposed to rethink the role and operation of the life insurance and general insurance councils, to make them more dynamic bodies. The role of the Insurance Information Bureau of India (IIB) in supporting data and technology driven insurance solutions was also discussed, according to Irdai.