BS BFSI Summit: Industry leaders discuss insurance changes for 2047 vision

At the Business Standard BFSI Summit, experts discussed key changes needed in the insurance amendment bill, and what measures can be taken to achieve the vision of 'coverage for all' by 2047

At the Business Standard BFSI Summit on Friday, top leaders from the insurance sector deliberated on the industry’s expectations from the insurance amendment bill and what it will take to fulfil the mission of ‘coverage for all by 2047’.

 

On the final day of the three-day event, Alok Rungta of Future Generali India Life Insurance shared his perspective, noting that even after 25 years, the country still has only a few insurance companies. “The industry is expecting many things. First is 100 per cent foreign direct investment (FDI). Second, there is a lot of talk on composite licences. These are the two big points that the industry is looking forward to,” Rungta said. 

 

He made these remarks during an insightful panel discussion titled ‘A Quarter of a Century Since Liberalisation: What’s Next?’, moderated by Manojit Saha, banking editor at Business Standard. 

 

Offering his views on the proposed bill, panelist Sharad Mathur of Universal Sompo General Insurance said, “One thing is clear — our regulator is very progressive and has become more of a developer. I am hopeful that we may see the rise of monoline and sector-specific insurers. This is possible if investors, whether international players or institutional investors, are given the flexibility and freedom to operate.”

‘Need for a perpetual licence’

Sumit Bohra, President of the Insurance Brokers Association of India (IBAI), shared the brokers’ perspective, emphasising the need for a perpetual licence. “From a broker’s perspective, a perpetual licence is what we are looking for. Currently, the licence needs to be renewed every three years, which hampers business continuity. If this goes through, distribution will receive a significant boost. The regulator has already submitted a white paper on perpetual licences to the finance ministry. We’ll have to see how it progresses,” Bohra said.

Role of micro-licences

Discussing how insurance penetration can reach the last mile, Mayank Bathwal of Aditya Birla Health Insurance suggested that micro-licences tailored for specific regions or business categories could be a solution.

 

“What will it take to achieve ‘insurance for all’, which is the key mantra of both the Centre and the regulator? I believe the concept of sub-licences is very interesting, as it allows companies to focus on particular segments aligned with their existing market,” Bathwal noted.

 

He added, “Another aspect to consider is how we can make insurance more relevant for customers. There have been discussions around value-added services, which give the insurance sector an opportunity to introduce new offerings.”