IRDAI asks intermediaries to set up online platforms combining digital access with human advice

Mumbai: The insurance regulator has asked intermediaries to develop hybrid and niche customer service platforms for purchasing insurance. The call for online platforms comes at a time when the regulator is working on Bima Sugam - an online insurance marketplace where all industry players will participate.

Speaking at an event organized by the Insurance Brokers Association of India, Debashish Panda, Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), emphasized the continued importance of intermediaries in the evolving insurance marketplace.

"There is an apprehension would come to the mind all of you whether the market is slowly cutting the need for intermediaries. The answer is a big no," said Panda. "It is the expertise and insightfulness on the broker that make them a critical link in the evolving marketplace," he said.

According to Panda, intermediaries must develop customer service platforms combining digital channels with personal advice, new products, and expertise. Such platforms should facilitate multiple quotes, coverage comparisons, payment options, instant insurance policy downloads, and the ability to speak with insurance specialists throughout the process, he said.

As the market changes, the role of intermediaries becomes even more remarkable due to their understanding of customers, ground realities, and available choices.

Panda highlighted the need for a combination of technology and knowledgeable, service-oriented, and committed distribution channels, such as brokers, to address the challenges in the industry. Brokers around the world have already started adopting technological trends like intelligent enterprise and intelligent automation, which assist them in transitioning from subject matter experts to becoming risk-predictive advisors. These technologies enable brokers to operate with speed, accuracy, and convenience for both users and customers.

Panda also mentioned that the Indian insurance market is preparing for an e-marketplace protocol - Bima Sugam. He expressed enthusiasm about the support this initiative receives from various stakeholders, including the broker community. This protocol aims to create a UPI-like platform for the insurance sector, aiming to universalize and democratize insurance access in the country.

Additionally, establishing the Bima Sugam supportive ecosystem is being considered to ensure insurance reaches every corner of India through tech-led, women-centric, localized insurance initiatives. The regulatory framework is also revamping to prioritize choice, transparency, and technology-driven processes.

Recognizing the crucial role of brokers as intermediaries, Panda emphasized their significance in connecting insurers and customers meaningfully. Brokers play a vital role in promoting choice, enhancing customer experience, and driving overall efficiency in the insurance market. Efforts are being directed towards embedding insurance into the traditional fabric of the nation, which requires a combination of brick-and-mortar presence and digital penetration. The role of intermediaries becomes even more significant in educating people at the grassroots and understanding their needs to facilitate adequate insurance inclusion.

The Chairman highlighted the advantages of the broking channel, which ensures policyholders receive suitable product choices, fair prices, favourable terms, and comprehensive coverage.