Kathmandu. The Insurance Brokers Association of India (IBAI) will soon start discussions with the Insurance Regulatory and Development Authority of India (IRDAI) about the proposed reforms in the insurance distribution system in the country.
IRDAI released a two-part consultation paper titled ‘Recalibrating the Economics of Insurance Distribution’ on September 23. The consultation paper includes proposals related to distributors’ remuneration, insurance company spending, market conduct, transparency and digital distribution.
IRDAI has sought comments from stakeholders by October 25. These measures are currently only proposals and subject to change before the final rules are issued.
Narendra Bharindwal, Chairman, IBAI said they are closely reviewing the consultation paper to fully understand the scope, impact and purpose of the proposals outlined by the regulator. “While we have some concerns about some of the proposed changes and their potential impact on the insurance ecosystem, we believe that the consultation process provides an important opportunity for constructive dialogue with stakeholders,” he said, adding, “We look forward to engaging with IRDAI in a positive, evidence-based and progressive manner. Our aim is to protect the interests of insurers, support the sustainable development of the insurance sector, and contribute to the regulatory system that advances the larger objective of ‘Insurance for All’.” ’
IBAI represents about 750 members. It generates more than Rs 500 billion in annual premiums in the Indian general insurance market. – Agency
