IRDAI puts customers first. Lays the groundwork for customer-centric reforms

IRDAI is taking measures to put customer interest at the forefront

IRDAI lays the groundwork for customer centric reforms

The Insurance Regulatory and Development Authority of India (IRDAI) has consistently taken steps to make insurance more customer-friendly. Right from the start of the millennium, when the insurance industry was opened for private players to offer more product choices, to the latest change in simplified distribution rules, IRDAI believes in increasing insurance penetration. It has, thus, taken several measures to make insurance simple and approachable.

In 2022, IRDAI announced various reforms that would help customers in the coming years. Here’s what customers can look forward to –

More options to choose from

IRDAI announced widening the insurance distribution channel with easier norms for tie-ups for corporate agents and marketing companies. This would boost the product options available to customers allowing them to choose a suitable policy from a wider array of solutions. This, in turn, would foster competition and allow insurers to innovate with their products. Insurance penetration would also increase.

Related - Here are 5 things to know before buying life insurance

Quicker resolutions

Customer disputes and grievances are common in the insurance sector, and the IRDAI is often approached to handle matters. Dispute resolution and grievance redressal can boost customer confidence, so IRDAI has updated its IGMS (Integrated Grievance Management System) platform to Bima Bharosa.

The updated platform is aimed at increasing the efficiency of grievance redressal and giving customers a platform to log their complaints in different regional languages.

Enhanced digitization for a better experience

New-age technological developments have been integrated into insurance solutions, which have benefitted customers in the past. In the future, IRDAI is emphasizing enhanced digitization to deliver a better customer experience. Tools like Artificial Intelligence (AI), data analytics, dematerialization of insurance plans, etc., are expected to smoothen the insurance cycle.

One-stop insurance solutions

IRDAI has introduced a one-stop platform called Bima Sugam for all insurance needs of customers. The platform allows buying insurance plans, seeking answers to queries, claim settlements, etc. The portal would also be linked to other platforms like the UIDAI, CDSL, and NSDL to make insurance transactions more transparent and easy.

The various measures that IRDAI has taken would facilitate insurance penetration. It is a step towards the regulator’s ‘Insurance For All by 2047’ goal. All the measures add to a better customer experience, so the insurance sector eliminates its prevalent problems and becomes attractive for increased customer participation.

Related - Here's how the revised IRDAI guidelines after the pandemic would affect motor insurance.

Check out 10 health insurance changes that IRDAI affected.


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