In the third Bima Manthan session in Hyderabad, the Insurance Regulatory and Development Authority of India (IRDAI) stressed bringing EASE or Enhanced Access and Service Excellence for insurance services delivery in line with the banking industry. It said it wants to create an environment that provides policyholders the ease of approaching an insurance company for purchasing, servicing, or receiving claims or lodging grievances. IRDAI said that insurance companies must strive to provide maximum excellence in their service delivery.
The session called for enhanced responsibility of the insurance companies and the councils to ensure best market practices to maximize customer satisfaction. It discussed various strategies to deepen insurance inclusion and penetration across different businesses. The industry was encouraged to be more active in launching new-age products and for emerging risks.
The health insurance consultative committee also presented its findings on increasing health insurance penetration and efficiency in claim servicing through short-term and medium- to long-term steps. It highlighted the need for collaborations to expand India's health insurance ecosystem. IRDAI favoured a cashless mode over the reimbursement method in health insurance.
In the session, there was a common consensus on prioritising term insurance, pension, and annuity segments in life and health, motor, and property in general insurance. It was encouraged to leverage existing government databases and collaborate with regulators to expand reach.
The industry registered year-on-year growth of 18 per cent till January 2023, with the general insurance industry recording 17 per cent and the life insurance industry clocking 18 per cent. The session also reviewed the life and non-life segments, highlighting opportunities in each area.
Various initiatives by lead insurers in their respective states were showcased, such as Jeevan Beema Jagruti Abhiyan in Jharkhand, a digital campaign in Ladakh, a comprehensive survey on insurance awareness across 10 cities in Chhattisgarh, etc. The "Roti, Kapda, Makaan, Aur Jeevan Bima" campaign by SUD Life Insurance Co. Ltd. in Jharkhand saw increased awareness about PMJJBY, and as a result, its coverage rose from Rs 8 lakh to Rs 14 lakh in two months due to the campaign. The lead insurers agreed to formulate a five-year plan to increase their footprints in their respective states.
Further, IRDAI mission mode teams on risk-based capital, risk-based supervision framework, and convergence to Ind AS/IFRS presented the progress made in the respective areas. In addition, the industry's active participation in data submission, testing, prompt responsiveness, better synergies, etc., were highlighted for the transition to the India model of RBC & RBSF and the adoption of Ind AS.
Considering the immense potential of account aggregators, Sahamati, a non-profit organization, presented a holistic strategy for adopting the account aggregator framework. The insurance sector's use-case studies by leveraging the framework on customer onboarding, risk assessment, verification, reducing frauds, claim payments, reduction in unclaimed amounts, and advanced analytics-based products were discussed. Insurance Information Bureau of India (IIBI) also showcased how advanced data analytics can help the industry and presented a demo of 'Bima Satark' – a fraud prevention tool created in-house by IIBI for health insurance. The sector was encouraged to put 'Digital First' in its data strategy.
