IBAI and IRDAI collaborate on roadmap for “insurance for all” by 2047

The Insurance Brokers Association of India (IBAI) held a dialogue with the Insurance Regulatory and Development Authority of India (IRDAI) during the Bima Vitarak Manthan event.

The focus was on strategies to improve insurance awareness, create innovative products, and enhance career opportunities in the insurance industry.

IBAI underscored the crucial role brokers play, contributing significantly to India’s insurance premiums.

IBA’s recommendations to drive positive change in the industry

IBAI’s proposed initiatives include:

• recognising insurance expenditure as a valid Corporate Social Responsibility (CSR) activity to motivate corporate entities to invest in insurance awareness and financial literacy programs
• including brokers in State Level Insurance Committees to enhance insurance coverage in rural areas through local administrative units
• creating more career opportunities in insurance, particularly for high school students
• raising insurance awareness through industry-specific solutions
• promoting the adoption of villages by IBAI to increase insurance awareness
• developing composite insurance products
• advancing the Bima Trinity, a comprehensive insurance solution, for broader coverage

Additional recommendations aimed at enhancing the role of brokers and improving customer experience included:

• using technology to allow brokers to integrate with non-individual entities, providing more choices and convenience to customers
• reducing the educational qualification requirement for brokers from 10th pass to 8th pass
• allowing brokers to self-license their direct sales teams for retail product sales
• enabling Bima Vahaks to join brokers as points of sales persons (PoSPs) and vice versa
• expanding the sale of the Bima Vistaar product through PoSPs
• adopting global best practices like permitting captives and managing general agents (MGAs), premium financing, and instalment options for premium payments across all insurance categories

“The financial services sector, particularly the insurance industry, will be a cornerstone of India’s development journey. As we strive towards a developed India, it is imperative to ensure that insurance products are accessible, affordable, and tailored to meet the diverse needs of our population. IBAI has adopted five villages to promote awareness regarding insurance cover, reflecting our commitment to extending insurance coverage to underserved communities,” said IBA vice president Narendra Bharindwal.

IBAI committed to working closely with IRDAI and other stakeholders to drive positive change in the insurance industry and achieve “insurance for all” by 2047.

The session concluded with the IRDAI chairperson emphasising the importance of ongoing collaboration with brokers to implement these initiatives effectively.