IBAI in talks with IRDAI to achieve insurance for all by 2047

Hyderabad: The Insurance Brokers Association of India (IBAI) engaged in a deliberation session with the Insurance Regulatory and Development Authority of India (IRDAI) at the Bima Vitarak Manthan. During the session, IBAI proposed initiatives to IRDAI for enhancing insurance awareness, developing innovative products, and fostering career opportunities in the insurance sector.

Recognising brokers' significant role, contributing 35% of India's general insurance premiums and placing 20% overall, proposals included recognising insurance spend as valid CSR, broker involvement in State-level insurance committees, and promoting industry-specific solutions. Key initiatives discussed were village adoption, composite insurance products, and promoting Bima Trinity for universal coverage.

IBAI put forth several key proposals, which included:

• To enable insurance, spend as a valid Corporate Social Responsibility (CSR) expenditure which will encourage corporate entities to invest in insurance awareness programs and initiatives, furthering the cause of financial literacy and inclusion.
• Insurance brokers' participation in State Level Insurance Committees and steering state-level insurance programs for last-mile penetration, extending coverage to villages through Gram Panchayats and District-level Insurance Committees.
• Fostering career opportunities in the insurance sector, especially among high school children across States.
• Promoting insurance awareness, IBAI emphasized the need for industry-specific solutions to address the unique challenges faced by various sectors. Proposals such as Adoption of villages by IBAI to promote insurance awareness,
• The development of composite insurance products, and the promotion of Bima Trinity – a comprehensive insurance solution – were discussed as part of the roadmap towards achieving universal insurance coverage.

Furthermore, IBAI outlined several recommendations to enhance the role of insurance brokers and improve the overall customer experience. These include allowing brokers to leverage technology to integrate with non-individual entities, thereby delivering greater choice and convenience to customers. They also propose reducing the educational qualification requirement from 10th pass to 8th pass, enabling brokers to self-license their direct sales teams for retail product sales, and allowing Bima Vahaks to join brokers as PoSPs(point of sales person) and vice versa. Additionally, IBAI advocates for the Bima Vistaar product to be sold through PoSPs and the adoption of global best practices such as permitting captives and MGAs, premium financing, and instalment options for premium payments across all insurance categories.

Narendra Bharindwal, Vice President of IBAI, stated, "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."

IBAI has committed to work closely with IRDAI and other stakeholders to drive positive change in the insurance sector and achieve the goal for ‘Insurance for All’ before 2047. The meeting concluded with IRDAI Chairperson calling for continued collaboration with the broker community to effectively implement the proposed initiatives, ensuring the success of India's insurance sector.