More insurers, capital, distributors and healthy competition required to make insurance for all by 2047

• IRDAI chairperson Debasish Panda in a keynote address at FICCI’s Annual Insurance Conference – ‘FINCON 2023’ stated that the country could achieve insurance for all before 2047.
  
• IRDAI chief suggested the industry could work with government groups like ASHA workers, anganwadi workers, self-help groups and non-government organisations to spread awareness about insurance.
  
• Since 2022, the insurance regulator has awarded licences to three insurance companies – CreditAccess Grameen Life Insurance, Acko Life Insurance and Kshema General Insurance.
  
• The regulator has granted a licence for life insurance business after 2011 and general insurance after 2017.
  

The insurance industry is targeting an ambitious vision to achieve ‘Insurance for all by 2047’ as the insurance regulator seeks to ease regulations to bring in more players and boost penetration of insurance products in the country.

The Insurance Regulatory and Development Authority of India (IRDAI) chairperson Debasish Panda, in a keynote address at FICCI’s Annual Insurance Conference ‘FINCON 2023’, stated that the country could achieve insurance for all before 2047.

“The risks that we face in our daily lives are numerous and highly unpredictable. And yet, despite this reality, insurance coverage remains a privilege only being accessed by few and not the majority,” said Panda at the conference.

Since 2022, the insurance regulator has awarded licences to three insurance companies – CreditAccess Grameen Life Insurance, Acko Life Insurance and Kshema General Insurance. The regulator has granted a licence for life insurance business after 2011 and for general insurance after 2017, he said.

To boost insurance penetration the regulator is also changing the registration guidelines and bringing in more clarity, he said. Besides, 20 odd companies are in the process of getting their insurance licences, he added.

India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2% and non-life insurance penetration at 1.0%, which is pretty low compared to other nations. This also offers huge opportunities for insurance players to tap into a market that offers high potential.

Panda also encouraged companies to utilise the increase in foreign direct investment (FDI) limit in the insurance sector to 74%, from 49% earlier, to bring in more capital and grow faster than in the past.

“I expect the industry must innovate and create products that are affordable and accessible and also available to a wide range of consumers,” said Panda.

He underlined the need to cater to 1.4 billion people, their businesses, properties, health, assets. And for this he said “we need more players, more capital, more distribution channels, more products, innovation and healthy competition.”

Panda added that the industry could connect with the last mile to spread awareness by working with government groups like ASHA workers, anganwadi workers, self-help groups and non-government organisations, who could be messengers to make people aware of insurance.