IRDAI approves setting up insurance e-marketplace Bima Sugam, goes for big regulatory revamp

New Delhi, March 23 (IANS) The Insurance Regulatory and Development Authority of India (IRDAI) has given its approval for the setting up of insurance e-marketplace Bima Sugam for buying, selling, and servicing insurance policies as well as settling claims.

“This marketplace will serve 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 an IRDAI statement.

The IRDAI said: “The Bima Sugam - Insurance Electronic Marketplace Regulations, 2024, aims to establish a digital public infrastructure named Bima Sugam towards universalisation and democratisation of insurance as well as empowering and safeguarding policyholders' interests and achieve the vision of 'Insurance for all by 2047.'

IRDAI said that it has approved eight principle-based consolidated regulations, following the comprehensive review of regulatory framework for insurance sector. It marks a significant milestone in regulatory governance which has replaced 34 regulations with six regulations, and introduction of two new regulations enhancing clarity and coherence in the regulatory landscape, according to the IRDAI statement.

These regulations encompass pivotal domains such as safeguarding of policyholders' interests, rural and social sector responsibilities, electronic insurance marketplace, insurance products and operation of foreign reinsurance branches, as well as aspects of registration, actuarial, finance, investment and corporate governance, the statement added.

Focusing on rural sector, the IRDAI (Rural, Social Sector, and Motor Third Party Obligations) Regulations, 2024 consolidate two erstwhile regulations pertaining to minimum business obligations in rural, social sector and motor third party business for insurers. Compliance and measurement of these statutory obligations have been revised where the unit of measurement under the rural obligations will now be Gram Panchayat.