Bima Sugam’s success will depend on pricing, user experience: Former IRDAI member

Bima Sugam’s success will depend on pricing, user experience: Former IRDAI member


Nilesh Sathe, former member of the Insurance Regulatory and Development Authority of India (IRDAI), welcomed the insurance reforms proposed by Chairman Ajay Seth but said the success of Bima Sugam will depend on pricing, technology and customer experience.

Sathe said Bima Sugam has the potential to become a game changer for the insurance industry. However, insurance is still a push product, with many customers continuing to rely on support whlie buying policies and settling claims.

Also Read | Exclusive: IRDAI wants insurance agent commissions to be based on sales effort

Sathe also said all insurance products should eventually be made available on Bima Sugam instead of limiting the platform to standard products.

Earlier, IRDAI Chairman Ajay Seth said the regulator will release a consultation paper on insurance distribution reforms within three to four weeks, focusing on customer access, transparency and pricing flexibility.

For the full interview, watch the accompanying video

Seth also said the proposed Public Insurance Registry could help reduce fraud and mis-selling through a digital data infrastructure, while insurer-owned platform Bima Sugam aims to improve product discovery and offer lower-cost insurance products by increasing competition on pricing and performance.

Also Read | India’s insurance premium growth falls to single digits as profitability pressure rises: IRDAI chairman

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