MUMBAI: Insurance regulator Irdai is laying the groundwork for a new supervisory system for insurance companies. It was a key topic of discussion at the 8th Bima Manthan held here. The meeting brought together top Irdai officials and leaders from across the insurance industry for a two-day summit focused on preparing the sector for the future.
With an eye on global standards, discussions centred on risk management, new financial reporting rules, and the implementation of a risk-based supervisory framework (RBSF). RBSF employed by several countries worldwide, allows regulators to focus their attention on the insurers posing the greatest risk to the system, rather than applying a one-size-fits-all approach. By assessing factors like financial stability, governance, and compliance history, regulators can tailor their oversight and intervene early where necessary.
Both regulators and insurance companies shared insights gleaned from pilot studies and impact assessments, paving the way for a smoother transition to the RBSF. The meeting also highlighted the progress of Bima Sugam, a digital platform designed to simplify the insurance experience for consumers. This initiative, along with a renewed focus on cybersecurity in the face of evolving digital threats, underscores the industry’s commitment to modernisation and consumer protection.
Expanding insurance penetration and exploring new avenues for capital augmentation, such as encouraging insurance companies to go public, were also key themes. The Bima Manthan demonstrated a unified effort within the insurance sector to achieve the ambitious goal of “Insurance for All by 2047.”
