Debasish Panda,chairman, IRDAI
At the recently concluded Bima Vitarak Manthan, Debasish Panda, chairman, IRDAI emphasized on creating an insurance ecosystem which is highly sensitive to the needs of the policyholders propelling towards “Zero Friction, Zero Pain-points and Zero Complaints” environment.
Mumbai/Hyderabad:
At the recently concluded Bima Vitarak Manthan, the Insurance Brokers Association of India (IBAI), an association of 615 insurance brokers, has proposed initiatives to the regulator IRDAI for enhancing insurance awareness, developing innovative products, and fostering career opportunities in the insurance sector.
IRDAI had convened a landmark first-of-a-kind two-day interactions “Bima Vitarak Manthan” on May 9th and 10th, 2024 at its head office in Hyderabad. The event brought together key intermediaries, including brokers, corporate agents ,(Banks, NBFCs, Others) and Insurance Marketing Firms (IMFs) for extensive deliberations on the future of insurance distribution in the country.
Recognizing brokers’ significant role, contributing 35% of India’s general insurance premiums and placing 20% overall, proposals included recognizing insurance spend as valid CSR, broker involvement in State Level Insurance Committees, and promoting industry-specific solutions.
Some other key initiatives proposed by IBAI are-
– Fostering career opportunities in the insurance sector, especially among high school children across states.
– The development of composite insurance products, and the promotion of Bima Trinity – a comprehensive insurance solution – were discussed as part of the roadmap towards achieving universal insurance coverage.
Furthermore, IBAI outlined several recommendations to enhance the role of insurance brokers and improve the overall customer experience. These include allowing brokers to leverage technology to integrate with non-individual entities, thereby delivering greater choice and convenience to customers.
They also propose reducing the educational qualification requirement from 10th pass to 8th pass, enabling brokers to self-license their direct sales teams for retail product sales, and allowing Bima Vahaks to join brokers as PoSPs(point of sales person) and vice versa.
Additionally, IBAI advocates for the Bima Vistaar product to be sold through PoSPs and the adoption of global best practices such as permitting captives and MGAs, premium financing, and instalment options for premium payments across all insurance categories.
Narendra Bharindwal, Vice President of IBAI, stated, “” IBAI has adopted five villages to promote awareness regarding insurance cover, reflecting our commitment to extending insurance coverage to underserved communities.”
Over the course of two-days, participants engaged in constructive discussions centered on driving multi-faceted reforms in the distribution landscape. IRDAI unveiled its vision of instituting principle-based regulations for the operations of intermediaries effectively, enhancing their role in facilitating greater access to insurance for all segments of society.
Debasish Panda, chairman, IRDAI emphasized on creating an insurance ecosystem which is highly sensitive to the needs of the policyholders propelling towards “Zero Friction, Zero Pain-points and Zero Complaints” environment.
Emphasis was laid on insurance intermediaries reaching out to the prospects and the policyholders to assess their needs and requirements; and partner with insurers to bring about insurance products tailored to the diverse needs of the population in terms of various age groups, income groups,occupational groups, gender and region-specific products.
New products such as Title Insurance and Surety Insurance were also highlighted, with the intention of increasing their uptake.
Measures to address mis-selling and force selling were deliberated along with having an effective grievance redressal mechanism in place.
Continuous training for sales force and the adoption of best practices from the global insurance landscape were recognized as vital for the sustained growth of the industry.
It was highlighted that the readiness of distribution channels to embrace technology could bring about explosion in the distribution space which can result in reduction of distribution costs benefiting the policyholders.
Detailed discussions were held on leveraging proposed insurance e-marketplace – Bima Sugam in taking the insurance to the last mile.
Bima Vitarak Manthan would be a periodic meeting serving as a platform for continuous engagement with various intermediaries, having meaningful interaction, sharing of insights and exploring innovative strategies and collaboration.