Key regulatory developments that changed the course of insurance industry in 2023

financialexpress.com:

Embracing regulatory transformation and innovation, the year 2023 was nothing short of a milestone for the insurance industry. The dynamic customer needs served as a catalyst of change and the industry rose to the occasion with several customer-centric policy changes. The regulatory authority is already steering the sector towards Insurance 2.0 with initiatives like Bima Trinity bringing about better accessibility and inclusivity to the insurance industry.

From the adoption of modern technologies for creating seamless customer experiences to transforming claim settlements, the year saw many successful endeavors to redefine the insurance landscape. The IRDAI’s inspiring objective has every stakeholder united in the mission of a fully insured India by 2047, the efforts of which are already visible.

Let’s delve into some of these standout initiatives that defined the industry’s trajectory this year.

IRDAI has indeed shifted from a rule-based approach to a principle-based approach and it is reflected through several changes that have been recently introduced. One such example is the amendment to EOM (Expenses of Management) which provides far greater flexibility and autonomy to the industry players. This is an enabling provision for the industry in ways more than one.

The insurance players can decide how to manage their fixed cost and commission as per the model that best suits them. As the stakeholders get a better grip on managing their expenses and reduce the cost of distribution, this will lead to a better pricing structure and ultimately benefit the end consumer. This will synergise the multi-directional efforts of the industry towards the holistic objective of bridging India’s protection gap.

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