The insurance industry, in its liberalised avatar, is young. Where large international insurers are over a 100 years old, we have been in existence for just 18. If business is a race, then these 18 years are just a start off the block. But what a start it has been. Between 2000 and 2005, the basic regulatory framework was established. From 2005 to 2010, new products such as term insurance and unit link were established, and bank distribution was allowed. Between 2010 and 2015, products came into the spotlight dramatically as unit-linked life insurance was restructured for better returns; and the industry saw its first years of degrowth. In 2015, the new insurance law increased foreign ownership to 49%.
This is the backdrop in which Insurance Regulatory and Development Authority of India’s (Irdai) new chairman has taken charge. These periods of change are opportunities for the industry to pause, reflect, plan and start anew.The next phase must bring policyholders centre-stage. Some initiatives that can achieve this are listed here.
