Speaking on the insurance sector, Seth said trust remains the most important factor for the industry as it looks to deepen penetration and expand access.
On Bima Sugam, Seth acknowledged that the initiative is running slightly behind schedule.
He added that the platform will continue to operate on a commission-based structure.
Seth also signalled that a new framework for distribution reforms could be unveiled soon, with IRDAI expected to release a consultation paper before the end of July.
Also read: IRDAI links insurance executives’ pay to customer outcomes and business performance
Commenting on the broader insurance sector, Seth said the life insurance industry has been performing well, but has the potential to grow much faster. He noted that life insurers play a unique role by providing financial protection while also managing household savings, though the sector faces intense competition on the savings side.
On the goal of “insurance for all”, Seth said insurance products must be affordable, accessible and available. He stressed that awareness alone is not enough and that trust is equally critical to increasing insurance adoption.
The IRDAI chairman also called for stronger governance standards in the sector.
He said a portion of the remuneration of insurance key managerial personnel (KMPs) should be linked to product performance, claims settlement and grievance redressal. He further highlighted the need to improve returns for policyholders, citing a shortage of quality long-term secure investment instruments in the market.
In a notable shift in stance on public listings, Seth said insurance companies should pursue IPOs only when there is a genuine need to raise capital, adding that IRDAI does not support listing merely for the sake of transparency.
(Edited by : Anshul)
First Published: Jun 30, 2026 3:11 PM IST
