IRDAI forms panel to review microinsurance framework


To suggest ways to boost demand for insurance products

The Insurance Regulatory and Development Authority of India (IRDAI) has set up a committee to review the regulatory framework on microinsurance and recommend measures to increase the demand for such products.

Comprising officials of the IRDAI, insurers and NGOs, the committee has been formed in the backdrop of a less- than-desired offtake of microinsurance products despite their inherent benefits. With IRDAI Executive Director Suresh Mathur as the chairman, the 13-member panel has been tasked with suggesting product designs with customer-friendly underwriting, including easy premium payment methods and simple claims settlement procedures.

Panel representatives

The committee has representatives from life, general and health insurance companies in the public and private sectors. A circular from IRDAI said India was seen to be a very exciting market and a pioneer in the microinsurance sector in the world. Specifically intended for the protection of low-income people, with affordable insurance products, microinsurance promises to support sustainable livelihoods of the poor. However, its market penetration remains low.

While reviewing the regulatory framework on microinsurance in the country and abroad, the committee will suggest changes in the distribution structure, if any, including mobile-based and technology driven solutions. Setting a three month timeframe for submission of the recommendations, the circular said the committee would also suggest creating effective awareness programmes.

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Printable version | Jan 18, 2020 4:43:52 PM |

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