The Insurance Regulatory Authority of India’s (IRDAI) has floated a proposal to set up an online insurance self-network platform for e-commerce operations, to bring in financial inclusion services for the deprived sections of the country. The move is also aimed at inflating the penetration of insurance services in the country.
As per IRDA, ”Mobile internet usage in rural areas has gone up significantly in the last two years. We are particularly heartened by the response to the Pradhan Mantri Suraksha Bima Yojana scheme. It was a brilliantly conceived idea for the premium collection of 12. We also hope to increase insurance penetration in untouched pockets of India with the e-commerce initiative.”
The regulatory body has also suggested that the web pages of insurance agents should be considered as the websites of insurance companies and that these firms should be held responsible for ensuring they are in sync with the regulatory procedures.
“There are too many instances of agents mis-selling or over-stating a policy’s benefits, this will help curb that trend,” added IRDA.
The upcoming platform is expected to facilitate the entry for distributors to switch to digital platforms and numerous companies can benefit by setting up a large network of digital touch points, creating more transparency and distribution network.
As per the proposal, the insurance self-network platform can be made available as regular internet webpage or as a mobile application or both.
“From a customer’s point of view, it could prove tedious as they will have to compulsorily have an e-insurance account to buy insurance through this channel. Overall, if companies are able to execute this process appropriately and invest in acquisition efforts, this platform will give companies a huge edge over the competition in the long run,” says M Ravichandran, President, Insurance, Tata AIG General Insurance Co.