Bima Sugam to go live by September-end: IRDAI chief

IRDAI’s Chairman, Ajay Seth

IRDAI anticipates that insurance offerings will be launched on the Bima Sugam digital platform by September’s end, and a consultation paper outlining distribution reforms is expected to be published by late July, according to IRDAI Chairman Ajay Seth speaking on Tuesday.

Bima Sugam is envisioned as a digital marketplace that unites insurers, distributors and policyholders on a single platform, allowing users to compare, purchase, manage and settle insurance policies online. Although the initiative has experienced some delays, Seth noted that full product integration should be completed by the end of September.

In addition, the regulator is developing broader distribution reforms and plans to release a consultation paper prior to the end of July.

At a public awareness event hosted by the Insurance Awareness Committee (IAC-LIFE), Seth remarked that these reforms, together with Bima Sugam, constitute part of the wider structural transformation taking place in the insurance industry.

Foreign Direct Investment in the Insurance Sector

The insurance sector is experiencing a notable surge of interest from foreign investors seeking to expand their stakes following the government’s decision to permit 100 % foreign direct investment (FDI) in the industry.

Over the past decade, our nation’s economy has grown by a factor of 2.5, and the life insurance segment’s revenue has risen by roughly the same amount—2.5 times versus 2.6 times—showing little practical difference,” he remarked.

The sector holds the potential for far quicker growth than has been achieved to date. Consequently, the question arises: how can we enhance the economics of the industry?” Seth inquired.

IRDAI has recently issued two new general insurance licences, with one approved just yesterday. Although general insurance is presently outpacing life insurance in growth, Seth believes the life insurance sector could expand far more rapidly, driven by increasing incomes and a substantial protection gap. “The life insurance industry stands at a crossroads, needing to discover—or rather redefine—its value proposition,” he added.

Insurers must extend their reach beyond major metropolitan areas, concentrating instead on Tier‑II and Tier‑III towns as well as rural regions to unlock the next growth stage. It is essential to serve customers across all income brackets and strengthen confidence in insurance offerings,” he said.

He also emphasized that insurers should consider an IPO only when there is a legitimate need to raise capital, not simply to achieve greater transparency.

The IRDAI chief further urged the adoption of stricter governance standards within the sector. He proposed that part of the compensation for insurance key managerial personnel (KMPs) be tied to product performance, claims settlement efficiency, and grievance redressal.

Published on June 30, 2026