In his inaugural address at the 17th India Rendezvous yesterday morning, Insurance Regulatory and Development Authority of India (IRDAI) member (non-life) Thomas Devasia said, “IRDAI is supporting the insurance industry to build strategically on the enormous successes of the innovations and successes of India’s digital public infrastructure.”
He said, “With the launch of the state insurance plan in 2023, the IRDAI has formalised and is working on a strategy of insurance inclusion.”
Speaking about IRDAI’s mission of insurance for all, Mr Devasia said, “It will be achieved via the state plans and the Bima trinity. He said this is strategically designed also to position India as a prominent global reinsurance hub.
“The next significant insurance reforms in the Indian insurance industry will be the rolling out of IFRS17 equivalent of Ind AS117 and our own risk-based model,” said Mr Devasia.
He said these are being worked on by dedicated mission mode teams and these will feed into the risk-based supervision framework under refinement, by another mission mode team.
Mr Devasia said by working in tandem with the International Financial Services Centre Authority at the GIFT City, “IRDAI aims to foster an environment conducive to the growth of reinsurance business both within and outside the conventional Indian market.”
He said, “The Indian market in the near future will witness newer opportunities for regional, niche, more monoline, captives, mutuals and microinsurance to add to the momentum of growth.”
Industry must remain prudent and vigilant
In his welcome address, GIC Re CMD Ramaswamy Narayanan said, “The Indian market, in a way, is at the crossroads. The economy is on a growth trajectory, thus ensuring that the insurance market continues its double digit growth momentum. The regulator has been very proactive in ensuring that the regulations are simplified to enable ease of doing business.”
He said, “There is also enough push to ensure that penetration levels in in the market improve substantially. There is a lot of focus on ensuring that insurance is available to the strata of the people who need it the most.”
“But challenges, too, exist. Recent CAT events show that there is a need to take climate change more seriously. As the frequency and severity of the losses increases, there is a fear that some risks may become uninsurable, something unthinkable in a growing economy like ours.”
Mr Narayanan said, “Obviously, there is a need for the industry closely to work with the government machinery for the benefit of the country as a whole.”
Speaking about the market-hardening trends, Mr Narayanan said, “We must bear in mind that these trends are not a flash in the pan but are expected to continue for a few more years. It is up to us to brace for the times ahead.”
He said we must educate our clients on the importance of rate adequacy and sustainability for the future of our industry. “We must speak about the fact that underwriting prudence is now paramount. Sense and sensibility will continue to be rewarded. In a sense, it is back to the basics again – finally.”
As many as 800 delegates from 42 countries attended the 17th India Rendezvous. It is being held in Mumbai from 17–19 January.
