Time to open up insurance sector for 100% FDI

With the new regulatory framework focusing on ease of doing business, a reduced compliance burden and a more robust and resilient risk management system through risk-based capital, risk-based supervision, and the International Financial Reporting Standard, the industry is now positioned to meet its evolving needs, said DEBASISH PANDA, chairman, Insurance Regulatory and Development Authority of India (Irdai).

- Tamal Bandyopadhyay at the Business Standard BFSI Insight Summit

To fully capitalize on these changes, the industry must expand into underserved regions, developing products tailored to the specific needs of different geographies, he highlighted. He also advised that embracing technology was crucial, along with implementing strong cybersecurity measures. Further, the claims experience for customers must be smooth and satisfying, ensuring a delightful journey throughout the process, which companies must prioritize and continuously enhance. In a fireside chat with Tamal Bandyopadhyay at the Business Standard BFSI Insight Summit, Panda spoke about the transformation the industry had undergone since he took over and what was next in store. Edited excerpts:

How is the insurance sector getting transformed?

Insurance has to reach every household, has to touch every citizen, and has to reach the enterprise. When we are talking of Viksit Bharat by 2047, we must have a fully insured society, a fully banked society, and a fully pensioned society.

In the past couple of years, we have looked at what the system was that existed and also looked at whether the regulatory system provides ample opportunities to what the policyholders would expect.

For Irdai, the policyholders and the prospects remain at the core. We looked at the agility of the framework. We looked at the progressive nature of the framework. We looked at whether it gives enough operational flexibility to the insurers. What we are looking at is how insurance could be made available, accessible, affordable, and, over and above that, how we build trust for insurance as a product.