The insurance regulator IRDAI has decided to set up Bima Sugam, insurance electronic marketplace, which will be a one-stop solution for all insurance stakeholders.
Bima Sugam, or Digital Public Infrastructure, is set to empower and protect the interest of policyholders, to increase penetration of insurance in India. This will also enhance availability, accessibility and affordability of insurance in the country, reads the draft guidelines released by the Insurance Regulatory and Development Authority of India (IRDAI).
What is Bima Sugam?
Bima Sugam will be a one-stop solution for all insurance stakeholders including customers, insurers, intermediaries or insurance intermediaries and insurance agents to promote transparency, efficiency, collaboration across the entire insurance value chain and technological innovation in insurance sector.
It is believed that this new digital infrastructure will usher in a UPI moment for insurance sector in India.
Some of the key provisions of Bima Sugam:
1. Bima Sugam will be a not-for-profit entity formed under section 8 of the Companies Act, 2013.
2. Main objective of the company will be to establish, facilitate, develop, operate and maintain the marketplace for providing various services to the insurance stakeholders.
3. The shareholding of the company will be widely held amongst life insurers, general insurers and health insurers with no single entity having controlling stake.
4. The shareholders, as and when required, will contribute to the capital requirements of the company.
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5. The company will have well documented policies, procedures and governance arrangements for its functioning which will include operational, risk management and internal controls.
6. It will have two nominees from IRDAI on its board.
7. The board will be constituted to ensure that there are operational and risk management policies, procedures and systems that enable company to identify, measure, monitor, manage and mitigate various risks and these will be reviewed periodically.
8. The marketplace’s functions will include efficient and effective end-to-end digital solution in meeting the requirements of the insurance stakeholders and the market it serves.
9. The marketplace will implement consent-based architecture to its services.
10. The marketplace will not store, hold or maintain any data.
All the stakeholders are requested to forward their comments on the proposed regulations in the attached format before March 4, 2024.
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Published: 14 Feb 2024, 05:47 PM IST
