Bima Sugam: A Digital Insurance Marketplace

• 16 Feb 2024

Recently, Insurance Regulatory and Development Authority of India (IRDAI) proposed to Bima Sugam, a pioneering digital marketplace that could potentially revolutioniz insurance services for policyholders and stakeholders.

Key Points

• UPI Moment for Insurance: IRDAI Chairman likens Bima Sugam to the UPI moment for insurance, envisioning a comprehensive platform for purchasing, servicing, and settling insurance policies.
• Empowering Policyholders: Bima Sugam aims to empower policyholders, increase insurance penetration, and ensure accessibility and affordability, positioning itself as a crucial component of the insurance ecosystem.
• Not-for-Profit Establishment: A not-for-profit company, with wide shareholding among life, general, and health insurers, will oversee Bima Sugam's operations, ensuring no single entity holds a controlling stake.
• Self-Sustainable Revenue Model: The revenue model of Bima Sugam will be self-sustainable, with consumers not charged for utilizing marketplace services. Shareholders will contribute capital as needed.
• Board Representation and Governance: IRDAI will nominate two members to the company's board, responsible for establishing, operating, and maintaining the marketplace. Transparency, efficiency, and collaboration across the insurance value chain are prioritized.
• Universal Access to Insurance: Bima Sugam aims to democratize insurance by offering a one-stop solution for all stakeholders, fostering technological innovation, and advancing the vision of Insurance for all by 2047.
• Deadline for Feedback: IRDAI sets a March 4 deadline for submitting comments and suggestions on the proposed norms, encouraging stakeholder engagement in shaping Bima Sugam's future.