Buying, renewing and claiming insurance may soon get easier with Bima Sugam

IRDAI's Bima Sugam aims to be a one-stop shop for all insurance needs, from buying and renewing policies to filing claims, making access easier and more transparent for policyholders.

The Insurance Regulatory and Development Authority of India (IRDAI) has announced the launch of Bima Sugam, a digital marketplace that promises to make buying, renewing, and claiming insurance policies as seamless as online shopping. While the platform has been formally unveiled, the first phase is expected to go live in the coming months once insurers and intermediaries finish integrating their systems.

 

A single digital window for insurance

 

Backed by the Life Insurance Council and General Insurance Council, Bima Sugam aims to be a one-stop shop for life, health, motor, and general insurance products. Policyholders will be able to compare premiums, purchase new policies, renew existing ones, and even file claims, all through a single interface.

 

“The Bima Sugam website is our authentic gateway for the public and the industry. It brings customers, insurers, and intermediaries together on a common platform. This is the first milestone in a journey that will transform insurance access and transparency for every Indian household,” said Prasun Sikdar, managing director & chief executive officer, Bima Sugam India Federation.

 

A game-changer for penetration

 

India’s insurance penetration remains low -- roughly 1 per cent of GDP, compared to the global average of 3.9 per cent.

 

According to Sanjiv Singh, head -- marine & specialty lines, General Insurance Council, initiatives like Bima Sugam could help close this gap. “Covering India’s entire population requires massive use of technology and efforts by intermediaries. IRDAI’s Bima Sugam is a revolutionary step with the ambition to become the largest online market for insurance products and services, a model that could inspire other developing economies,” Singh said on the GI Council website.

 

Why the timing matters

 

India is the world’s 10th-largest insurance market and, according to Swiss Re’s Sigma report, is expected to become the 6th largest by 2032, ahead of Germany, Canada, and South Korea. With premiums forecast to grow at nearly 9 per cent annually over the next decade, experts see strong tailwinds from rising incomes, higher risk awareness post-Covid, and regulatory reforms such as the hike in FDI limit to 74 per cent. 

 

What it means for policyholders

 

 

For consumers, Bima Sugam could cut through the clutter by:

• Offering a single platform to shop for policies 
• Enabling faster renewals and claims 
• Reducing paperwork and improving transparency

 

If successful, it could become a blueprint for other markets, ushering in a new era of customer-friendly, digitally enabled insurance access in India.