“Such gigantic payment infrastructure has been just a piece of the puzzle,” says Debasish Panda
Debasish Panda, the distinguished Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), recently articulated a compelling vision for the future of the nation’s insurance sector at ET Now Global Business Summit 2024. In a thought-provoking discourse, he highlighted the pivotal role that insurance plays within the broader economic tapestry of India.
“Insurance provides employment to more than 6 million people. Multiple pocket sizes. Multiple preferences. This presents an opportune moment to tap into our vast potential,” he said.
Positioned as the 5th largest economy, with aspirations to soon claim the 3rd spot, India’s financial sector has undergone a phenomenal transformation, notably propelled by groundbreaking initiatives like UPI. Amidst this transition from bricks to clicks, insurance emerges as a linchpin, solidifying the robust ecosystem that underpins the nation’s economic strength.
Speaking about the growth of India’s financial sector, he stated, “The growth in Indian financial service decade has been phenomenal. UPI has changed the financial landscape of India. Such gigantic payment infrastructure has been just a piece of the puzzle.”
Panda passionately advocated for a departure from the one-size-fits-all approach, asserting that the answer lies in harnessing technology to address the unique and varied needs of the nation. He pointed to the transformative impact of technologies like blockchain, enabling smart contracts, and the effectiveness of data analytics in fraud detection. “Even fraud detection has become more effective with data analytics. AI/ML, IoT have changed data. We have created a mission-mode team within the IRDAI to facilitate advancements in the insurance sector,” he said.
Debashish Panda addressed his commitment to democratise insurance resulting in creating a unique marketplace as the BHIMA SUGAM. He further said, “Inclusive insurance is now a reality: the regulators, the insurers, the companies. Scripting a Tomorrow is truly inclusive. Insurance industry has matured over the last two decades. A new framework has been created: from rule based to principle based. More avenues to growth.”
A noteworthy transition is the move towards a Risk-Based Capital (RBC) regime, strategically designed for the efficient utilisation of capital. Dedicated teams are working tirelessly to ensure the seamless implementation of this forward-thinking approach.
Debashish, in his remarks, highlighted the facilitation of new investors entering the space with ease, provided they possess a sound understanding. A regulatory overhaul is in progress, with 80 regulations set to be streamlined down to a more manageable 15-20, and an impressive reduction of 1500 circulars to just a few dozen. This simplification aims to create a more investor-friendly environment, paving the way for a dynamic and accessible landscape in the insurance sector.
