Eliminating the minimum capital requirement of Rs 100 crore will allow entry of small, niche and niche players, thereby increasing insurance penetration and density in the country.
“Like in the banking system, we have microfinance institutions, regional banks and small finance banks. So, we have all categories of banks then non-banking financial companies. In the insurance sector too, we have players of varying sizes. should come to the market so that they can operate in smaller geographical areas.” Debasish Panda told PTI in an interview.
He added that the entry of smaller and elite players will help in increasing insurance penetration and density.
“Therefore, in this context we are suggesting to the government that please look at the existing provisions and see if you can remove the minimum limit of Rs 100 crore. The regulator can make rules based on the size of the company that they (promoters) ) ).
Going forward, he said, the relaxation in capital requirement would help in creating exclusive or a mono line for segments like motor and properties.
“Why not create the kind of framework in our law that allows not only micro, small, sectoral companies etc., but also those supplying specific products,” he said.
Panda also said that IRDAI is working on Bima Sugam, which will act as a game changer in the insurance sector by providing a one-stop platform for multiple services including policy sale, renewal and claims settlement.
This technology based portal will help in increasing the insurance penetration in the country by ensuring hassle free experience to the customers across the country.
Bima Sugam should be a UPI moment for the insurance industry, he said.
Unified Payments Interface (UPI) has revolutionized digital payments in the country as common people have started using it even for small payments. In a short span of time, the success of UPI has attracted global attention and many countries are trying to replicate it. Launched in 2016, payments through UPI has crossed the Rs 11 lakh crore milestone in September this year.
“Bima Sugam will be a one-stop shop for buying and selling insurance, for policy servicing and also for claim settlement. Insurance companies can join the platform. It will be plug and play with API (Application Programming Interface) interface. has been,” Panda said.
He further added that all insurance intermediaries including individual agents and web aggregators will have access to this portal.