Insurance regulator forms committee to study 'Bima Vahak' and 'Bima Vistaar' — details here

The Insurance Regulatory and Development Authority of India (IRDAI) is taking up various regulatory reforms towards achieving the objective of “Insurance for all”. For the same, it has set up a 24-member committee to develop and suggest an affordable and comprehensive cover for the rural population.

"In order to facilitate availability of an affordable, simple but comprehensive cover to the hitherto untapped areas and rural population, it is necessary to understand the needs and requirements in those areas and formulate suitable risk cover and customized distribution channels who appreciate the market dynamics in such areas. Field force in remote areas need to build trust of the local population, be more patient and persuasive to be able to explain the nuances of the need for risk cover. In this context a women centric distribution model emerges as an apt alternative," IRDAI said.

"Latest developments in the technology like Artificial Intelligence (AI)/ Machine Learning (ML) can be gainfully utilized by creating a digital platform to reach the last mile," it said.

According to Casparus J H Kromhout, Managing Director & CEO, Shriram Life Insurance, the regulator's initiatives and the steps taken to extend “insurance to all” are very welcome.

"The insurance penetration in the country is lower than in most developed countries and it is assumed that it is due to the lower-than-needed coverage in the rural and mass market segments. Initiatives to extend insurance penetration to these segments would help build financial stability and security in these communities," he said.

Further, the focus of a women-centric distribution model can help not only spread insurance awareness faster in the heartlands but also provide women with earning opportunities and financial confidence.

However, as already stated by IRDAI, proper care needs to be taken to understand the unique needs of these segments, Kromhout said.