Bima Sugam, a digital one-stop marketplace being developed by India’s insurance regulator and insurance companies, is likely to pose a challenge to insurance aggregators in India, such as PolicyBazaar.
The IRDAI’s Bima Sugam is likely to be launched in a few months, the head of one of India’s largest life insurers said, adding the platform may offer insurance products at 10-15% cheaper premiums, according to a report by LiveMint.
The head of a large life insurance company said, “Bima Sugam in the insurance industry will be like what ONDC (Open Network for Digital Commerce) is in the e-commerce space or what UPI (Unified Payments Interface) is in the digital payment industry. Ultimately, customers and every insurer will have to drift towards Bima Sugam as a separate, dedicated, large distribution channel.
“Saving on distribution costs, it will offer insurance products at 20-30% cheaper premium prices than what are offered on PolicyBazaar and by agents of insurance firms. This will attract customers, though only simple term assurance, accidental insurance, motor, health and property insurance policies will be initially sold on it and complex life and general products will come at a later stage.”
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