Latest news with #Irdai
Time of India
an hour ago
- Business
- Time of India
Use data to woo millennials to life insurance: Irdai
MUMBAI: Irdai whole time member (life) Swaminathan Iyer said that insurance companies need to leverage data to convince the working population to make life insurance an important aspect of their financial planning. "There is increasing awareness of life insurance among all sections of society, more specifically the millennials. However, emotions do not work much, and you have to drive logic through data," Iyer said at a Life Insurance Council event. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 hours ago
- Business
- Time of India
Mis-selling of life cover not at alarming levels: Irdai
MUMBAI: The Insurance Regulatory and Development Authority of India (Irdai) has said that mis-selling in the life insurance sector is not at alarming levels, citing grievance data published in its annual report. Speaking at an industry event, Irdai member (Life) Swaminathan S Iyer said the number of mis-selling complaints are not alarming. They currently stand at around 0.41 per 100 policies. While it is not alarming, the regulator has consistently told the industry that the number must keep going down. Insurance CEOs at the event on launch of insurance awareness campaign said that addressing mis-selling is a collective industry responsibility, and both the regulator and insurers remain committed to further reducing the number of complaints. On the issue of public listings, Iyer clarified that Irdai does not mandate IPOs but encourages insurers to consider it as they grow. There have been deep conversations between the regulator and insurers, he said. As companies mature, listing becomes a natural next step, to show the world we are strong and well-governed, he added. With policy volumes stagnating and premium growth tapering, the industry has launched a major awareness campaign titled " Sabse Pehle Life Insurance ", backed by a Rs 450 crore investment over the next three years.
Mint
7 hours ago
- Business
- Mint
Irdai has no plan to manage insurance distribution channels despite mis-selling
Mumbai: Even as mis-selling of insurance plans by banks has drawn scrutiny, the sector regulator doesn't want to manage distribution channels and seeks to focus on customer awareness to check the malpractice. 'It's not necessary that every mis-selling is mis-selling, it's also about the customers' understanding of the product,' said Swaminathan S Iyer, member (life), Insurance Regulatory and Development Authority of India on the sidelines of an event on Wednesday. 'Once you drive home that your understanding is different from what the product I think the absolute number on mis-selling will definitely reduce.' The regulator has facilitated an open architecture for banks and insurance companies, and it is now up to the individual entities to decide how they sell products, Iyer said, adding that more clarity on the matter will be available once the Insurance Amendment Bill is passed. On whether the regulators can mandate an open architecture for banks to sell products of multiple insurers instead of only the insurance company promoted by them, Iyer said it's a matter that the Reserve Bank of India (RBI) might have to take up. State Bank of India andICICI Bank only sell insurance of group companies, even though they are allowed to partner with nine insurers, including three each from the life, general, and health segments. 'Distribution cannot be mandated; we can facilitate it. We'll work towards it,' Iyer said, adding that as of now, Irdai's complete focus is on growing insurance reach and penetration. In November 2024, finance minister Nirmala Sitharaman and former Irdai chairman Debasish Panda had separately flagged rising instances of insurance mis-selling. The finance ministry has asked banks and non-banks to stop offering incentives on insurance sales to eliminate this malpractice, Mint reported on 3 June. The department of financial services issued specific instructions, asking lenders to immediately review their marketing practices, sell insurance products only as per customers' requirements, and not link sales targets to incentives. Last month, RBI deputy governor Rajeshwar Rao said that mis-selling without regard to suitability and appropriateness would beget distrust in schemes aimed at providing a safety net to low-income households. 'We are examining whether it necessitates framing of guidelines to address mis-selling of financial products and services by regulated entities,' he had said at a conference. Insurers, however, want to focus on deepening their distribution. Banks have almost 6-7 times more reach than all the branches of life insurance companies—a fact that is recognised by the government, HDFC Life managing director Vibha Padalkar told Mint in an interview last month. She also said that there is no conclusive data proving that mis-selling via the bancassurance channel is worse than overall mis-selling across the industry. 'Our focus should be on strengthening processes, not on curtailing bancassurance. We need more distribution touch points, not fewer,' she said. On whether Irdai is considering a road map for listing of insurance companies, like RBI has for banks, Iyer said the regulator has issued an advisory for listing but does not plan to mandate it. According to Iyer, listing has three large objectives: transparency, governance, and capital. While capital has not been an issue for insurers, transparency is being driven through disclosures, which the regulator has already been mandating a lot more of, he said. Instead, Irdai would prefer to look at insurance listing on a case-to-case basis. 'As a regulator, we will only look at it from an insurer-to-insurer basis, and see what is the best fit for which company, and how do we drive that. Mandating will not be a good thought for now,' he said. Padalkar had told Mint that a listing road map for large insurers would be healthy from a governance point of view. 'In insurance, most of the companies are unlisted and there is minimal disclosure, which adds to the opacity of the sector. There are unlisted companies managing over ₹ 75,000 crore worth of public funds,' she said, adding that even if these companies don't list, it would be a good idea for them to start making disclosures like a listed company. 'This would bring about a lot more transparency and improve market conduct,' she had said. Iyer was speaking at the sidelines of an event by the Insurance Awareness Committee (IAC) to launch 'Sabse Pehle Life Insurance' awareness campaign. The IAC, part of the industry body Life Insurance Council, plans to spend ₹ 150-160 crore every year on this campaign, members said at the event. Life insurance is growing at a compounded annual growth rate (CAGR) of 9.5%, according to Irdai data. The total premium of life insurers stood at ₹ 8.29 trillion as at the end of FY24, up from ₹ 7.82 trillion in FY23. The total premium has grown at a CAGR of 10% over the last five years.
Time of India
10 hours ago
- Business
- Time of India
Life insurance cos to pump Rs 450 crore on awareness campaign to deepen penetration
Battling a fall in penetration, life insurance companies on Wednesday committed to spending at least Rs 450 crore on a three-year multimedia awareness campaign. The Insurance Awareness Committee launched the campaign with the theme 'Sabse Pehle Life Insurance', which will have contributions from all life insurance players on the basis of their premium incomes. "We will spend at least Rs 150-160 crore per year, and we have commitments lined up to run the campaign at least for three years," Kamlesh Rao, chairman of the council, told reporters here. It can be noted that the penetration of insurance has dipped for the last few years, and the overall premium collected by companies stands at 3.2 per cent of GDP in FY25 against 4 per cent in FY23 and 3.7 per cent in FY24. India is still the 10th largest market in the world from a penetration perspective, but regulator Irdai's member (life) Swaminathan Iyer said that we have a long way to go. Live Events Speaking at the event, he said only about 36 crore of the 140 crore people have a cover at present, and added that migration to and out of big cities exposes people to financial vulnerabilities, which make insurance necessary. A survey done by the council also revealed that while people are aware and have taken cover, it may be inadequate for them. The campaign focuses on term, child and savings plans initially and also includes other aspects. Meanwhile, replying to a question on whether the watchdog is mulling allowing insurers to invest in gold exchange-traded funds, Iyer said that Irdai looks at all requests that are made, and the interests of policyholders and the growth of the industry are of importance to it.
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Business Standard
6 days ago
- Business
- Business Standard
Beware pressure tactics: Limited-time deals and fear-based appeals
This National Insurance Day, let us look at the various types of fraud that are taking place and how you can avoid falling prey to them Himali Patel Mumbai Listen to This Article A 65-year-old retired resident of Mumbai lost ₹2.36 crore to an online insurance refund scam. Fraudsters posing as officials from regulatory bodies like the Insurance Regulatory and Development Authority of India (Irdai), National Securities Depository Limited (NSDL), and National Payments Corporation of India (NPCI) contacted him via WhatsApp in November 2024, promising refunds for premiums of seven lapsed insurance policies. After paying an initial processing fee, the victim was asked to make several more payments under various pretexts. When no refund materialised, he realised in May 2025 that he had been defrauded and lodged a complaint. This National Insurance Day,
