Insurance Regulatory And Development Authority of India (IRDAI)

Why in the news? 

The Insurance Regulatory and Development Authority of India (IRDAI) celebrated its 25th Anniversary. 

Significance of IRDAI in transforming the Insurance sector

• Insurance Growth:
  • Insurance penetration (percentage of insurance premium to GDP) at 4.2% in 2021-22 compared to 2.71% in 2001-02.
  • Insurance Density (ratio of premium to population) at $91 in 2021-22 compared to $11.5 in 2001-02.
• 'Insurance for All' by 2047: IRDAI has committed to enable 'Insurance for All' by 2047, where every citizen has an appropriate life, health and property insurance cover etc.
• Expanded regulatory role: New intermediaries have started operating in the market, like corporate agents, Bancassurance (selling insurance products through banks), on-line sales, etc.
  • The digital transformation accelerated by the authority's guidance on e-KYC, paperless policies, digital payments, etc.

Major Initiatives by IRDAI

• Bima Sugam: An online insurance marketplace for buying, selling, and servicing insurance policies as well as settling claims.
  • It is a part of IRDAI's Bima Trinity - Bima Vistaar, Bima Vahak, and Bima Sugam.
• Saral Jeevan Bima: Provides basic protection to self-employed individuals or people in low-income groups. 
• Integrated Grievance Management System: To create a central repository of grievances across the country and provides for various analyses of data indicative of areas of concern to the insurance policyholder.
• Pan India survey: Through the National Council of Applied Economic Research (NCAER) in a bid to improve on its strategy of creating insurance awareness. 
• Mandating Board Approved Policy for Insurers: Insurers are mandated to have Board approved Insurance Awareness Policy with action plan for organizing various activities promoting consumer awareness on various aspects of insurance.

Conclusion

As the insurance sector continues to evolve, IRDAI remains committed to adapting and enhancing its regulations to meet the changing needs. IRDAI's initiatives in areas such as promoting financial inclusion, encouraging innovation, etc. will be instrumental in driving the sustainable growth of the insurance sector.