The Insurance Regulatory and Development Authority of India (IRDAI) will soon rollout insurance plans for all States along with identifying a lead insurer for each district.

“This will be a major initiative to improve the penetration of insurance by involving the insurers and State governments. The idea is to replicate  financial inclusion drives including the lead bank scheme in the banking sector,” a senior official of IRDAI told businessline

The insurance regulator has already taken up the matter with the States to be part of the programme, which is likely to be launched formally in the ensuing new financial year. “Most of the States have already expressed their consent and the work is in progress,’‘ the official said.

The regulator had also discussed the matter with the insurers , which is ‘eager’ to take part as it augurs well both for the social security of the people as well the business growth of the insurers, he said.

Co-ordination committee

A State level co-ordination committee consisting of insurers, State government officials and representatives of the regulator will monitor the implementation of the State insurance plans with monitoring by nodal officers. There will be two lead Insurers in each district for both life and non-life sectors, the official said. 

“The higher disposable income, formalisation of the savings and diversification of the economy and millennial population will drive further growth in the insurance, if we provide enabling environment,’’ the official said.

The regulator is confident of making a headway in spreading the insurance coverage in a few years after rolling out the State insurance plans as it has already set the the goal of insuring India by 2047. 

‘Competitive environment’

In its recent board meeting, the IRDAI reaffirmed its commitment to enable insurance for all by 2047, where every citizen has an appropriate life, health and property insurance cover, and every enterprise is supported by appropriate insurance solutions.  “One of the objectives is also making the insurance sector globally attractive,’‘ the official said. 

The regulatory architecture will also be forward-looking to promote a conducive and competitive environment, leading to a wider choice, accessibility and affordability to policyholders, he added. 

As per IRDAI estimates, the insurance industry is set to register about 18 per cent growth in the current financial year ending March 31, 2023.