Looking back at 2024

As we exit 2024, a look at some of the disruptions in the Indian non-life insurance industry. The results of these disruptions will be discernible over a period of time. Not all the measures would fructify, some would need to go back to the drawing board while some may have to be shelved, but the ones that succeed will go a long long way in making Bharat ready for attaining the vision- ‘Insurance for All by 2047’.

1)????? Insurance is very much in the news and in the minds of the people. The IRDAI Chairman, Shri Debasish Panda, has truly shaken up the industry, and in 2024, insurance became a buzzword, an industry attracting huge media coverage.

2)????? The General Insurance Council, earlier this year launched the initiative of ‘Cashless Everywhere’, a mammoth project aimed at making all health insurance claims ‘cashless’, irrespective of insurer, hospital, nature of treatment, etc. It is still ‘work in progress’, and we could see a major revolution in this area, as hospitals too are being engaged by the GI Council in a big way.

3)????? The regulatory reforms aimed at simplification and ease of doing business went into overdrive in 2024.? Repealing of existing regulations, new regulations & master circulars that are more principle based rather than prescriptive and focus on self-regulation by the stakeholders were the big-ticket reforms rolled out. Freedom to introduce new product offerings, freedom in pricing and freedom in remunerating distribution channels have all been provided. The industry is grappling with these new changes, but over a period of time, with a collaborative approach, the desired level of discipline and maturity would seep into the industry.

4)????? There was also a gentle nudge from the regulator that some areas had to be addressed in the interest of policyholders, such as no age limit in case of health insurance entry, reduction in the number of years for which pre-existing conditions can be excluded, etc. As far as the industry is concerned, if these are adhered to, in letter and spirit, it would prove to be a boon to policyholders.

5)????? Proposals for composite licences to insurers, 100% FDI in insurance and perpetual licenses to brokers were in the anvil, but the Insurance Act amendment bill, did not get tabled in 2024.

6)????? Under the prevailing norms, Zurich Insurance acquired majority stake in Kotak General Insurance. Berkley and Doha Insurance Group have announced opening of branches in GiFT City. As many as 80 insurance brokers applied/obtained new licenses.

7)????? The much-anticipated Bima Sugam India Federation, the company that would create a digital marketplace for insurance buyers and intermediaries, with insurers displaying their products and claim settlements happening on the platform too, finally got off to a start with the appointment of its CEO. Building up the team and funding the venture is underway. How soon it will become operational and how soon it would stabilise, is what the market is eagerly looking forward to.

8)????? The awareness about insurance has certainly increased in 2024, as can be seen by the reception to the IBAI claims Handbook and the IRDAI Annual Report. Although both these publications have come out in earlier years too, in 2024, the media attention turned to these reports and the multifarious analysis done by people certainly helped enlighten the public about the insurance industry.

9)????? Digitalization of processes and mushrooming of insurtechs was a highlight of 2024. Doubts are expressed in some quarters about the viability, scalability, sustainability and compliance standards of some Insurtech. ?It was evident that the regulator was not a silent spectator, when the application of one such Insurtech to become an insurer was turned down.

10)?? A common demand of the insurance industry was reduction of GST on health insurance premiums from the current 18%, especially for senior citizens. After several rounds of discussions, the GST Council has put the onus back on the IRDAI to give its views. Hopefully, the rates of GST would get rationalized in 2025.

Collaboration between multiple stakeholders would be the key to success of most of the 2024 initiatives. Confrontation and the desire to Control the industry could be disastrous.

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HAPPY NEW YEAR, GREATER COLLABORATION * COMMUNICATION IN 2025 & BEYOND.

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