IRDAI’s Debasish Panda hints at reducing the compliance burden on the insurance sector
From about 80 regulations now, India plans on having just 15-20 regulations in the insurance sector as it adopts a “principle-based” oversight architecture to reduce compliance burdens. The chief of the insurance watchdog also announced this on Friday at ET Now GBS 2024, he would replace 1,500 circulars with just two dozen to make doing business easier.
Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), Debasish Panda, says the country wants insurance to reach the last mile, the last house, and the last individual.
To achieve that, India is developing an online marketplace for all insurance needs, streamlining the buying, selling, servicing, and settlement processes. This will offer various services to customers directly, aiming to make insurance more inclusive across different income levels and societal groups. India aims to implement a risk-based capital system in the insurance sector by 2025, aligning with global standards. It’s predicted that India’s insurance market will become the world’s sixth-largest by 2032, up from its current tenth position. Given the country’s diversity, a one-size-fits-all approach won’t suffice. Insurers need to innovate and offer diverse products to stay competitive. Technology, particularly AI and big data, is reshaping the industry, accelerating settlements, and transforming traditional practices.