Data, tech & Bima Sugam to transform insurance sector: Irdai boss at BFSI

At the Business Standard BFSI Insight Summit 2024, Debasish Panda, Irdai boss, shared his transformative vision for India's insurance sector

Chairperson of the Insurance Regulatory and Development Authority of India (Irdai), Debasish Panda, laid out an ambitious roadmap for the nation’s insurance sector at the Business Standard BFSI Insight Summit 2024. In a conversation with Business Standard consulting editor, Tamal Bandyopadhyay, Panda shared his vision of a future propelled by advancements in technology, data, and digital innovation. He emphasised Irdai's commitment to making insurance both accessible and affordable, placing policyholders firmly at the core of the authority’s regulatory mission.

 

“Insurance must reach every household, touch every citizen, and support enterprises,” Panda said, emphasising that universal insurance and pension access are crucial to achieving a ‘Viksit Bharat’ by 2047. He highlighted Irdai’s efforts to build a more agile, adaptable regulatory framework that prioritises policyholder needs.

   

The digital platform Bima Sugam, according to Panda, will be instrumental in revolutionising the sector by acting as a comprehensive public infrastructure for policyholders. “Bima Sugam will be a gamechanger, enabling customers to navigate the entire insurance journey—from purchasing and claims processing to servicing requests,” he explained. This initiative will empower customers to explore a variety of products in one marketplace, independent of intermediaries tied to specific companies, while also allowing distributors to conduct transactions more efficiently.

 

Irdai’s recent regulatory overhaul, Panda said, focuses heavily on integrating data and technology, essential to reaching India’s vast population. “For a population of 1.4 billion, it is impossible to physically reach everyone. Leveraging technology and data is indispensable,” he said, adding that enhanced data analytics from the revamped Insurance Information Bureau will support personalised risk pricing and product innovation.

 

Pricing reforms also featured prominently in Panda’s address, with Irdai’s approach favouring market-driven mechanisms over regulatory intervention. “The aim is to make insurance affordable and accessible while ensuring fairness through personalised pricing,” Panda said. 

 

He also predicted a rise in demand for Do-It-Yourself (DIY) insurance solutions, particularly from millennials seeking flexible, tailored products aligned with their risk profiles.

 

On the health insurance front, Panda highlighted that recent circulars mandate coverage for individuals with disabilities, mental health conditions, and surrogacy-related needs, creating an inclusive framework that ensures no one is excluded.

 

Bima Sugam, together with a data-driven approach, “will transform the insurance sector, bringing transparency, choice, and convenience to consumers,” Panda added, reaffirming Irdai’s commitment to steering the industry towards a more inclusive, technology-driven future.