The Insurance Regulatory and Development Authority of India (IRDAI) will look to facilitate entry of captive insurers into the jurisdiction’s insurance space to reflect the industry’s mature development.
During interactive sessions, newly-appointed IRDAI chairman Debasish Panda heard from industry participants, including CEOs and other key officials, as they identified areas to support healthy growth of India’s insurance industry, rationalise the regulatory framework, and reduce compliance burdens.
IRDAI’s strategic growth initiative is designed with the long-term objective that by 2047 (the centenary of India’s independence), every Indian citizen will have appropriate life, health and property insurance cover, and every business will be supported by appropriate insurance solutions.
Among the key areas identified in the existing legal and regulatory infrastructure for review was ease of entry for captive insurers, standalone micro insurers, niche players and regional entities.
In addition, IRDAI heard arguments for the creation of a framework to enable these new entities to enter the Indian insurance market, with special outreach to global investors to encourage foreign direct investment into the jurisdiction.
From a technological perspective, industry participants outlined the importance of facilitating data analytics to identify gaps in insurance coverages and assess market needs, as well as improving the technical competencies of insurance companies.
IRDAI also recognised the advantages of moving insurance supervision to a technology-driven, outcome-based approach that is aligned with international standards.
Regarding regulatory compliance, industry participants argued for a rationalised regulatory framework that eases the compliance burden on regulated entities, such as removing registration renewals for insurance intermediaries, lower operating costs and quicker regulatory approvals.
They also evaluated growth opportunities possible through extending the range of value-added services offered by insurers, and by strengthening communication between regulators and the industry.
