Irdai on a transformational journey to take insurance to masses

economictimes.indiatimes.com:

However, these are just two of the steps undertaken by the Insurance Regulatory and Development Authority of India (IRDAI). After years of being run in a hard-nosed, bureaucratic manner, the country’s insurance regulator is on a transformational journey under new chairman Debasish Panda. This has elated founders of insurtech startups as well as venture investors looking to bet on the space.Also read | Acko receives IRDAI nod to commence life insurance business This is not completely a bolt out of the blue.

It was all laid out in IRDAI’s vision document for 2047, released last November. One of the major target areas for the regulator is “boosting innovation, competition and distribution efficiencies while mainstreaming technology and moving towards [a] principle-based regulatory regime”. Some early signs of change are being seen already.

Three new life insurance licences were given out this year, of which two recipients — Digit and Acko — are startups. Currently, there are around 20 applications for fresh licences being scrutinised by the regulator.Also read | IRDA considering Managed General Agencies in insuranceEasing access “There was a time when mailing the chairman directly was not an option — it would bring you under their radar. But now, I can send a direct mail with the agenda, and request for a meeting.

And I always get a response,” said the chief executive of an insurance company with both general and life licences. Although industry insiders mostly had positive feedback, some founders are still a bit wary. “It is great that new licences are being given out, but we need new categories of insurers like we saw happening in the fintech space, something like a managed general agency.