IRDAI issues draft guidelines for insurance carriers
Insurance Regulatory and Development Authority of India (IRDAI) has released draft guidelines for insurance carriers.
Insurance carriers are a key component in achieving IRDAI’s goal of ‘Insurance for All by 2047’. The initiative aims to improve access and availability of insurance in the country.
‘Insurance for All’ aims to ensure that every citizen has an adequate life, health and property insurance cover by the year 2047.
Also, it is to be ensured that the operation of each enterprise is backed by proper insurance cover.
The entire insurance ecosystem has 3 pillars: the insurance customer (policyholder), the insurance provider (insurer) and the insurance distributor (intermediary/agent).
Objectives of the Insurance-Carrier Guidelines –
- A dedicated insurance distribution channel will be set up in each gram panchayat. These channels will increase insurance coverage as well as spread awareness about insurance.
- The focus will be on identification and development of local resources for dissemination of insurance within each Gram Panchayat.
- Induction of women as insurance carriers will be encouraged to gain the confidence of the local people.
Insurance Sector in India –
- India is the fifth largest life insurance market among emerging insurance markets in the world. India’s insurance market is growing at the rate of 32-34% every year.
- Foreign Direct Investment (FDI) up to 74% has been permitted under the automatic route for an insurance company.
- IRDAI is a statutory body constituted under the Insurance Regulatory and Development Authority of India (IRDAI) Act, 1999.
- Its main function is the overall supervision and development of the insurance sector in India.
- The powers and functions of IRDAI are laid down in the IRDAI Act, 1999 and the Insurance Act, 1938.
Source – IRDAI
