Mandating insurance not the way forward to boost penetration: Irdai member

T L Alamelu says health insurers need to address trust deficit; regulator has tried to standardise areas of concern such as definitions, pre-existing diseases, among others

Despite the fact that there is massive under-penetration in the county as far insurance is concerned, the regulator is of the view that the solution to this does not lie in mandating insurance because a stage has been reached where insurance should be a product on “demand”. It cannot be forced upon consumers by the industry or other stakeholders.

“There has generally been a feedback that either the regulator or the government should mandate certain types of insurance, but ideally the solution does not lie in mandating insurance,” said T L Alamelu, Member (Non-Life) Irdai.

“There has been a demand