“ With new eco-system that IRDAI is putting in place, which Panda described a “revolutionary phase,’ the industry which has almost reached Rs 10 trillion of premium income at the end of Fy2020-21 should be in a position to double it in next five years”
Bangalore:
The insurance regulator IRDAI has cleared their first stage approvals in its recent board meeting.
The Indian insurance industry which has not seen entry of any new players in recent times, will soon be joined by eight new companies.
“We have approved the entry of eight new players and we will clear their final approvals in another two board meetings,’’ said Debasish Panda, chairman, IRDAI, on Monday.
However, he didnot disclose names of these new players
Panda was addressing a an InsurTech Conference, hosted by the IRDAI, themed “InsurTech – Catalyst that Inspires”. in the city.
The insurance industry has now 56 primary players and 12 foreign reinsurers, he said.
“We would like to have many more players including micro insurers, insurtech, niche and differentiated players who can operate with a much smaller capital and geographical areas to cater to needs of unserved , underserved and low –income group. I don’t believe in one size fits all policy,’’ he said adding that IRDAI is considering to allow insurance companies to invest in insurtech companies.
With new eco-system that IRDAI is putting in place, which Panda described a “revolutionary phase,’ the industry which has almost reached Rs 10 trillion of premium income at the end of Fy2020-21 should be in a position to double it in next five years .
“ Indian insurance sector is at the inflection point. We would like to see the doubling of premium in every five years and by 2047 as India celebrates its centenary year of independence , India should be a fully insured country where every family and small business is adequately protected in terms of life, health and other basic covers.
The insurance industry has an assets base of Rs 50 lakh crore at the end of Fy 2021-22.
“The mass insurance schemes like Pradhan Mantri Suraksha Bima Yojana(PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) have helped insurance penetration to grow and we would like to plan more such schemes going ahead,’’ he said.
The country has received Rs 28,000 crore foreign direct investment(FDI) in the insurance sector so far.
IRDAi is committed to see the industry growing at much faster pace and all the new processes including amendments in the Insurance Act to be completed in next few months, he assured.
“We are talking to the government to ensure amendments in the Insurance Act. We are also now planning to set up a technology led innovation hub in IRDAI. As a regulator, we will hand hold and provide all regulatory supports, based on principle based regulatory regime, to the players who want to serve the industry. We will facilitate their exchange programmes with various departments of the government. I am already discussing new plans with Ayushman Bharat Digital Mission (ABDM) which will be invited in the next insurance CEOs meet,’’ he said.
Panda stated technology can be harnessed as extended arms to serve the needs of the low-income population, vulnerable sections, calamity-prone regions, MSMEs, Millennial population
“There is a need to leverage the data points from the various sources to enhance the underwriting process, improve claims experience for customers, able to design embedded insurance products, or value-added services.
On the technological front, IRDAI has already initiated steps like revamping the Regulatory Sandbox to make it vibrant on a continuous basis and plans to reconstitute existing committee with relevant new professionals.