Insurance regulator IRDAI has asked companies to develop strategies to provide affordable insurance products to achieve the target of insurance for all by 2047. The move is significant as high health insurance premiums are leading many elderly people to opt out of insurance due to cost.
Insurance councils held the ‘Insurance for All’ vision meeting in Mumbai on Friday and Saturday to lay the foundation for the vision of insurance for all by 2047. A key focus was on defining the concept of ‘insurance for all’ and developing mechanisms to measure and monitor progress.
One of the ideas discussed at the meeting was to increase the diversity of providers, who will in turn, offer a wide range of insurance products, thereby increasing competition and reducing prices. Another idea was to expand insurance distribution channels to make it more accessible, especially in underserved areas.
Companies pointed out that using insurtech can streamline operations, reduce administrative costs and improve efficiency. These savings can then be passed on to consumers in the form of lower premiums. Participants said strengthening the government insurance plan is critical to making insurance more affordable.
The IRDAI is an autonomous statutory body under the Ministry of Finance, Government of India, tasked with regulating and licensing the insurance and reinsurance industry in India. It was established by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India. The authority’s headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.
The lRDAI has directed health insurers to develop special policies tailored to the needs of the elderly and set up special channels to address their complaints and claims. With effect from April 1, the IRDAI has removed the age limit for taking out health insurance policies. 65 years was previously the age limit for taking out new health insurance policies.
The IRDAI is a ten-member body comprising the chairman and five full-time and four part-time members appointed by the Government of India.
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