India's insurance regulator is looking to issue 20 new insurance licenses to companies.
The regulator is following up with the interested companies to submit the required documentation to fast-track the issue of 20 new applications, said Debashish Panda, chairman, Insurance Regulatory and Development Authority of India, at the FICCI event held in Mumbai.
Earlier this year, the regulator approved the applications of two life insurance companies— Acko Life Insurance Ltd. and Credit Access Life and Insurance Ltd.— and one general insurance company— Kshema General Insurance Ltd.
For life insurance companies, these were the first new approvals since 2011, Panda said, while for general insurance, the last approval was granted in 2017.
A concrete plan and roadmap needs to be made for achieving 'insurance for all' by 2047, he said. He spoke about involving state governments that have an army of footsoldiers, in the form of panchayat workers, anganwadi workers, and self-help groups, that could help spread awareness and instill confidence among the people. "While insurance still remains a privilege for most, it should not be so."
Insurance, he said, protects and weathers the storms in the life of an individual and therefore enabling access to everyone is the biggest task and responsibility.
State insurance plans will help provide wider market access, he said. Bima Sugam— the one-stop-shop for all things insurance, including policy purchase and claim settlement; Bima Vistar— parametric bundled insurance products covering health, property, life, and personal accident (product); and Bima Vahak— a taskforce to sell Bima Vistar at panchayat level, will help in penetration.
Bima Sugam is expected to take a couple of months more to formulate and would come into force in about a year, said Panda, while encouraging the state-lead insurers appointed to tap into MSME clusters in their particular state.
He also spoke about insurers moving more towards digitalisation and how products could be made cheaper with 'use and file' made possible. The use of technology is changing the way insurance is being transacted globally, and this can be used by insurers and intermediaries in India to provide seamless services, Panda said.
He encouraged "embracing technology to provide meaningful services."
Insurers, he said, should engage more closely with the Insurance Information Bureau and use data management and analytics to help in the growth and planning of their strategies.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
