Get All Access for $5/mo

IRDAI Approves Online Insurance Marketplace 'Bima Sugam' The marketplace is backed by the insurance regulator, the Life Insurance Council and General Insurance Council, and will allow individuals to buy policies directly from insurance companies of their choice.

By Priya Kapoor

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

IRDAI

The Insurance Regulatory and Development Authority of India (IRDAI) has approved the setting up of the much awaited Bima Sugaman, an online platform for selling all kinds of insurance products. Backed by the regulator, the Life Insurance Council and General Insurance Council, the platform will allow individuals to compare and buy policies directly from insurance companies.

The regulator gave the approval at its 125th board meeting, and in a statement said, "This marketplace serves as a one stop solution for all insurance stakeholders, including customers, insurers, intermediaries, and agents, thereby, promoting transparency, efficiency, and collaboration across the entire insurance value chain."

According to draft regulations, the Bima Sugham would be not for profit company. "The company shall establish, facilitate, develop, operate and maintain the Marketplace for providing various services to the insurance stakeholders."

The shareholding of the company would be widely held amongst life, general and health insurers and no single entity would have a controlling stake. Shareholders shall contribute to capital as and when required. The IRDAI would nominate two members on the Board of Company, and the latter will constitute a Risk Management Committee to mitigate various risks.

The marketplace would result in reduced commissions as companies would be directly selling policies on the platform, though insurance intermediaries, too, would be on board.

The individuals will no longer have to visit multiple insurers' websites or aggregator portals, and can simply log on to this regulator-approved platform to buy policies online, especially those concerned about sharing their mobile numbers with aggregator portals to obtain policy premium quotes. Moreover, the regulator has proposed that an insurer can offer a discount on premium rates for policies purchased directly through the platform.

Besides the online markeplace, the IRDAI also plans to mandate demat policies and e-insurance accounts (eIA) to create a framework and give a further push to end-to-end digitisation of the insurance ecosystem.

Priya Kapoor

Former Feature Editor

Priya holds more than a decade of experience in journalism. She has worked on various beats and was chosen as a Road Safety Fellow in 2018, wherein she produced many in-depth & insightful features on road crashes in India. She writes on startups, personal finance and Web3. Outside of work, she likes gardening, driving and reading. 

 

 

 

News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

News and Trends

Broadcom Stock Soars on AI Growth Outlook

Broadcom's next-generation AI chips, built with advanced 3-nanometer technology, are set to debut in the spring

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

PB Fintech to Enter Healthcare Sector with New Wholly-Owned Subsidiary

The new entity, which is expected to be named either 'PB Healthcare Private Limited' or 'PB Healthcare Services Private Limited,' will focus on providing healthcare services.