"Insurance for All by 2047," says IRDAI Chairman Debasish Panda

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May 27, 2023

The Goal: Every Indian Insured by 2047

IRDAI Chairman Debasish Panda has called on the insurance industry to make "Insurance for All by 2047" a reality.

Speaking at the CII Annual Session 2023 on May 25, Panda outlined a clear three-pronged strategy to achieve this goal:

• Availability — expanding insurance products across all segments
• Accessibility — reaching underserved and rural populations
• Affordability — reducing costs for every citizen

India: A Massive, Under-Tapped Insurance Market

Panda highlighted that most Indians have far less access to insurance than people in other countries. This gap represents a large opportunity for new entrants and investors.

"The insurance sector offers a huge market which provides a strong potential for growth," he said. With one-fifth of the world's population, India is among the most significant untapped insurance markets globally.

He described India as a beacon of hope for global investors — calling it "the India Century" — backed by strong demographics, a large domestic market, and a robust stock market.

Why Insurance Penetration Must Grow

Panda noted that insurance plays a critical role beyond just individual protection. It also:

• Acts as a safety net for the underprivileged
• Reduces debt distress for families and businesses
• Supports corporate expansion and long-term growth

Despite this, India's insurance market remains largely under-penetrated. Panda set a clear challenge: double insurance penetration within five to seven years and build greater public awareness.

Technology at the Centre of Reform

Panda acknowledged that technology is reshaping the industry. Key drivers include:

• Big data and artificial intelligence (AI)
• Machine learning (ML) for risk assessment
• Insurtech, regtech, and fintech platforms

IRDAI is actively encouraging the adoption of these technologies to make insurance simpler and more accessible for all citizens.

Key Regulatory Reforms Already Underway

IRDAI has implemented several reforms to support the 2047 vision. These include:

• Use and File system — life insurance products can now be launched without prior regulatory approval
• Cost deregulation — IRDAI has stopped micro-managing intermediary and operating costs
• Simplified compliance — 97 circulars are being repealed and 79 returns rationalised
• More bank tie-ups — insurance companies can now partner with more banks for distribution
• Risk-based solvency — shifting from a factor-based to a risk-based solvency regime
• Reinsurance hub — India is moving towards becoming a global reinsurance centre

Panda said these reforms have simplified doing business, supported healthy competition, and promoted greater use of technology across the sector.

Proposed Reforms Still in the Pipeline

IRDAI has also sent proposals to the government for further reform. These include:

• Amending the Insurance Act to better serve all market segments and geographic areas
• Granting distributors perpetual licences
• Allowing insurers to offer value-added services beyond core coverage

The Bima Trinity: A UPI Moment for Insurance

Panda announced that IRDAI is working with life and general insurance councils to create a "UPI-like moment" for the insurance sector.

This will be delivered through the Bima Trinity:

• Bima Sugam — a unified digital insurance platform
• Bima Vistar — expanded insurance coverage for all
• Bima Vahak — a women-centric distribution network

State-Level Plans to Drive Last-Mile Coverage

To reach every corner of the country, IRDAI is developing state insurance plans that break down further into district-level plans.

Panda drew a parallel with the banking sector's state-level committees. Once state governments are treated as equal partners in this effort, he said, the goal of "Insurance for All by 2047" becomes genuinely achievable.

Source: organiser.org

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