Context:
IRDAI has directed insurance companies to infuse ₹300 crores into the upcoming digital insurance marketplace called Bima Sugam, by the end of February. This was discussed at ‘Bima Manthan’, a two day event at which the insurers interface with the regulator on industry matters.
Key Highlights:
- Each insurers hits at around ₹5 crore, with the major ones like SBI Life, HDFC Life, and ICICI Prudential securing their board approval for investment.
- Capital requirement for Bima Sugam has increased to ₹500 crore, which is now both higher and lower than the original estimate that stood at around ₹100-₹200 crore.
What is Bima Sugam?
- Also termed as “UPI moment for insurance,” Bima Sugam is a one stop digital platform for comparing, purchasing, and managing various insurance policies that will encompass life, health, and general insurance.
- Moreover, it provides a very cost effective option for distributors.
- The Bima Sugam is part of the IRDAI’s ‘Bima Trinity’ initiative, which includes:
- Bima Sugam: A centralized digital insurance marketplace.
- Bima Vistaar: Rural focused insurance product.
- Bima Vahak: A network of women led insurance agents.
Launch Timeline and Industry Participation
- Phase I is expected to be launched in mid 2025, after several delays since the project was proposed in the earlier part of the years.
- The Bima Vahak portal, meant for local insurance agents to be onboard, has almost culminated and is set for soft launched in April 2025.
- Major insurers like LIC, New India Assurance and ICICI Lombard have already received board approvals for contributing funds to the project.
