Insurance Platform

Bima Sugam can help deepen insurance penetration

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The Insurance Regulatory and Development Authority of India (Irdai) has paved the way for an ambitious digital platform, Bima Sugam, which is set to debut in December. This platform will serve as a one-stop marketplace where consumers can compare, purchase, and manage life, health, and general insurance products. With features such as e-KYC, seamless digital onboarding, and policy management, it seeks to bring efficiency, transparency, and trust to a sector often criticised for complexity and opacity. The promise is transformative. India's insurance penetration stands at just 3.7 per cent, far below the global average of 7 per cent. Despite reforms and the entry of private companies, insurance adoption continues to lag. A unified platform that simplifies access, lowers transaction costs, and fosters competition could democratise coverage, especially at a time when rising health expenses and climate-related risks make insurance indispensable.