Focus On affordability, Transparency, And Policyholder Protection: IRDAI Chairman To Insurance Brokers

Insurance brokers accounted for 42 per cent of India's general insurance business, up from around 30 per cent seven to eight years ago, Insurance Regulatory and Development Authority of India (IRDAI) Chairman Ajay Seth commented during an event on Saturday.

Speaking at the Silver Jubilee Conclave of the Insurance Brokers Association of India (IBAI), to mark 25 years of the association, Seth stated that life insurance has grown 2.5 to 2.6 times over the past decade, while general insurance had expanded 3.6 times during the same period.

Brokers should focus on affordability, transparency, risk mitigation and policyholder protection, Seth suggested. He also referred to the government's target of achieving "Insurance for All" by 2047.

The comments come at a time when insurance distribution has become an important part of discussions around the growing insurance coverage in the country. Brokers are one of several distribution channels through which insurance products are sold, alongside individual agents, corporate agents, banks and other intermediaries.

Future Prospectives For The Insurance Industry

The conclave, under the theme "Bimit Bharat - Surakshit Bharat", brought together policymakers, regulators and representatives from the insurance industry.

IBAI President Narendra Bharindwal has mentioned that the next phase of the sector should focus on improving access to insurance and making insurance products easier for customers to understand. He also referred to technology adoption, capacity building and knowledge sharing.

The association was incorporated on July 25, 2001, and represents licensed insurance brokers in India. Its members include insurance broking firms operating under licences issued by the insurance regulator.

Insurance brokers generally act as intermediaries between policyholders and insurance companies. Depending on the type of policy and the nature of the transaction, brokers can assist customers in assessing insurance requirements, comparing available products and arranging coverage.

Discussions On Insurance And Emerging Risks

The conclave included sessions on artificial intelligence (AI) and insurtech (insurance+technology), health insurance affordability, life insurance distribution, and reinsurance opportunities through GIFT City.

Health insurance affordability was one of the key areas of discussion. Rural and agricultural insurance were also discussed in the context of extending insurance coverage beyond urban and traditionally served markets.

The conclave also examined reinsurance opportunities through Gujarat International Finance Tec-City (GIFT City), which is India's international financial services centre.

IBAI has also discussed the government's insurance-related policy measures in recent months.