The top executives of India’s insurance companies gathered for the fourth edition of the annual Bima Manthan meeting to take stock of the development, and the way forward for the insurance sector. This periodic meeting, which serves as a cornerstone for continuous interaction and dialogue with the insurance industry, was held at the Insurance Regulatory and Development Authority of India (Irdai) headquarters on September 4 and 5, 2023.
At the meeting, the delegates unveiled a collective commitment towards propelling growth and development of insurance in India with an ambitious goal in mind – ‘Insurance for All by 2047’, Irdai said in a press release on September 6, 2023.
The two-day event saw wide-ranging discussions and presentations aimed at exploring growth opportunities within the insurance sector and devising strategies to capitalise on them. Participants deliberated on a wide range of topics, from addressing emerging risks in the insurance sector to fostering innovative product development. Strategies to bridge protection gaps, revamp distribution approaches, and leverage technology for expanding insurance access also took centre stage.
One noteworthy focus of the meeting was the progress made by the insurance industry towards the state insurance plan, which plays a pivotal role in expanding access to insurance across India’s vast landscape. Insurers have been assigned states and Union Territories with the objective of reaching the last mile and ensuring insurance accessibility throughout the nation.
Discussions also revolved around the implementation of crucial frameworks, such as the risk-based capital framework (RBC), risk-based supervision framework (RBSF), and international financial reporting standards (IFRS).
The meeting also highlighted the roll-out of the first quantitative impact study (QIS-1) under RBC and the commencement of the first pilot exercise under RBSF. The industry exhibited strong enthusiasm and commitment to transitioning into a future-ready, principle-based architecture.
The delegates also placed emphasis on the core principles of availability, accessibility, and affordability of insurance. Deliberations explored the diverse product offerings needed to cater to evolving requirements and the significance of increasing the geographical presence of insurance companies while enhancing distribution strategies.
The CEOs of the micro finance institutions network (MFIN) and Sa-Dhan, self-regulatory organisations registered with the Reserve Bank of India (RBI), also interacted with the insurance industry. They shed light on financial inclusion, micro insurance, and the potential synergies between microfinance institutions (MFIs), non-banking financial companies (NBFCs), small finance banks (SFBs), and the insurance sector. These insights revealed new avenues for increasing insurance penetration across India.
The meeting concluded with a reaffirmation of the collective commitment of the insurance and reinsurance sector towards advancing industry standards, promoting innovation, and ensuring that insurance remains a vital tool for risk mitigation and financial security.
According to Irdai, the fourth edition of ‘Bima Manthan’ underlines the importance of shaping the future of insurance in India and realising the ambitious vision of 'Insurance for All by 2047.