New broker regulations will be out very soon: IRDA Chairman TS Vijayan
Hyderabad, January 24, 2018…..New broker regulations are on the cards and will be out anytime very soon, informed Chief of IRDAI(Insurance Regulatory and Development Authority of India), TS Vijayan, informed while addressing the 14th Insurance Brokers Summit here in the city today. He inaugurated the Summit which is attended by 400 plus brokers from across India. We have sent regulations for the Gazette notification, he said. Speaking further he told brokers to make claim settlement more transparent by adopting technology. He also told them to improve insurance penetration. Life insurance is not even touched 4% and general insurance is much, much lower Vijayan, told them. He asked the community to bring out different kinds of insurance products. This will be your biggest contribution, he told them. Last year Rs 1,27,000 crore General Insurance Premium and 4,00,000 crore Life Insurance Premium was collected. Insurance needs are increasing. So also health insurance, which is growing well over 43 per cent annually, he told, them. Rs 30,000crore premium has come through brokers. 27 per cent share of new insurance has come through brokers, Vijayan informed. Insurance industry is growing. Contribution of Brokers is also growing. We at IRDAI recognize the importance of IBAI in developing people. Improve the online channel. Change along with the changing times. Digital push is required. Don’t be complacent with your achievement. Lead the industry with cutting edge technology he told them. Develop Apps, reach more customers, he told the insurance broking community.
Speaking further TSVijayan told brokers to correct erroneous practices if any. Earlier welcomingthe gathering, Sanjay Kedia, President, Insurance Brokers' Association of India(IBAI), said the role of the broker was increasing in a range of transactionsin the insurance market. Speaking further Sanjay Kedia added that the Non-life insurancepremium crossed INR 1,28,129 crores in FY2016-17 with agrowth of 32.9% over FY2016. Ofthis, Rs. 30,000 was placed by the brokers. InsurancePenetration for Non life industry in India stood at 0.77% in2016. Total Gross Domestic PremiumContribution by Insurance Brokers (non-life) was put at INR 30,442 Crs (FY2016-17). Demand for insurance broking has been growing with 428 brokers in theindustry as of today.
Projected Growth ofNon Life Insurance in terms of Gross Domestic Premium (GDP) is 17%, around INR400,000 crores. Insurance Broking to contribute around INR 160,000crores Sanjay Kedia informed. An insurance broker is the only distribution channelrepresenting policyholders, Kedia added. Thetechnology, data analytics and brokers' role in claim distribution (which isnot present in India today) would be game-changers going forward, Kedia said.
The Theme of theSummit was “InsuranceBrokers—Maximizing Value for Policyholders”.
It was organized byInsurance Brokers Association of India, the apex body of licensed InsuranceBrokers recognized by the IRDAI. As per Insurance BrokersRegulations 2013, all licensed brokers are required to be members ofIBAI. Director Insurance Brokers, Composite Insurance Brokers andReinsurance Brokers are the members. Around 400 delegates from across thecountry, representing Broker Member Organizations, Insurance Companies,Customers and other insurance industry stakeholders will be participating inthe Summit.
During the day longSummit Broker Friendly Insurer Survey Results were announced, and based o whichgave away the awards to the leading broker friendly insurers. Seven non life insurers were recognized andthey include: Future Generali in Small Private Sector General InsurersCategory; HDFC, ICICI Lombard, Tata AIG, IFFCO Tokio, BajajAllianz in Large Private Sector General Insurers Cetegory and NewIndia in Public Sector General Insurance Category. G.Srinivasn, CMD ofThe New India Assurance Co. Ltd which received the award spoke and said unlikethe general perception that Public Sector Companies do not settle claims fast,we excelled and have many satisfied customers to our credit.
In the annualE-Survey conducted by IBAI, all broker members rated insurers on variousparameters relevant for policyholders. The survey collected feedback oninsurers’ orientation towards brokers, claim and grievance handling, quality ofpolicy placement and domain expertise. The results were combined withquantitative information from public disclosures to identify the best insurersacross parameters. This effort would help insurers identify where they standvis-a-vis policyholders and brokers, said Mr Kapil Mehta, Director IBAI whoworked on this initiative. The survey covered only General and Health insurers,he added. The main objective of this Brokers Summit was to promote interactionencourage, promote, facilitate and protect the interests of the members of IBAIand to provide an avenue to the members for further education, training andresearch in all fields of insurance, said Mr. Vijay Rampal, Secretary of IBAI
The daylong eventhad Educative Panel discussions conducted by CMDs, Senior Executives ofinsurance companies and leaders of the Insurance Industry.
All together therewill be four panel discussions:
· Brokerscollaborating with insurers to maximize value for Policyholders
· Innovationin Policy Wordings, Claims, Technology, Distribution
· ExpandingRole of Insurance Brokers as Trusted Advisors
· RegulatoryFramework for Strengthening the Insurance Broking Channel