T.S. Vijayan, Chairman of Insurance Regulatory and Development Authority of India (IRDAI) stated that the regulatory body will be releasing new regulations for insurance brokers in the country. The double-digit growth of the insurance industry has led to a corresponding growth in demand for brokers, which was around 428 brokers last month.
The Chairman, in his message said that the phenomenal growth of the insurance industry is being facilitated by the rapid adoption of technology and digitization of insurance processes. The Chairman, at the 14th Insurance Brokers Association Summit revealed this information. He further highlighted that the new regulations had already been sent for the Gazette notification and will help in governing the brokers as well as maximizing value for the policyholders.
Laying emphasis on the low insurance penetration in the country, the Chairman exhorted the brokers to make use of technology for improving penetration. Currently, life insurance penetration is not even 4%, whereas general insurance is lower still. Vijayan also pointed out that there is further potential that can be tapped in the motor, health and life insurance segments. Adding that, steps like GST and demonetization had led to the formalization of the economy, which was good for the insurance industry.
Insurance penetration for the non-life industry was at 0.77% in 2016. The total non-life insurance premium collected in FY17 was ₹1,28,129 crore, out of which, the contribution from insurance brokers was ₹30,442 crore.
*Source: Indian Express
Also Read:
Insurers Seek Three-Fold Hike In Premium Under PM Scheme
General Insurers Collaborate To Fight Fraud