Must not view sector as playground for indisciplined growth - IRDAI Tripathy
This story was originally published at 15:33 IST on 12 December 2024
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--IRDAI Tripathy: Insurance penetration density remains a major challenge
--CONTEXT: IRDAI Member Satyajit Tripathy speaks at Global Insurance Summit
--IRDAI Tripathy: Need insurance products to protect against climate risk
--IRDAI Tripathy: Policies not reaching the people they were devised for
--IRDAI Tripathy: There is a gap in upskilling employees in insurance space
--IRDAI Tripathy: Insurance sector must grow in a way fincls are
--IRDAI Tripathy: Must not view sector as playground for indisciplined growth
--IRDAI Tripathy: Need resilient domestic reinsurance framework
MUMBAI – India's insurance sector needs to grow sustainably and in a disciplined manner, Satyajit Tripathy, member-distribution of the Insurance Regulatory and Development Authority of India said at an event on Wednesday. He added that while focusing on profitability, the overall balance sheet of the sector should not become unsustainable.
"It is necessary that we protect the overall strength of the industry and see that it is not only a resilient industry, but that the business models are sustainable, and it is growing in an orderly fashion and in a disciplined manner," Tripathy said at the 16th Global Insurance Summit, organised by ASSOCHAM. "The industry after so much of relaxation and flexibility should not be viewed as a playground to indulge in half-hearted, unworldly, and indisciplined growth," he said, adding that policies were not reaching the people they were designed for.
Tripathy said that the penetration density in the insurance sector remains a major challenge. Along with innovative products, penetration in rural areas was necessary to ensure that more people had access to insurance. He also reiterated that a 'one size fits all' approach wouldn't work, and said there was still a long way to go when it came to bringing out new products in line with the demand seen.
In recent years, he said, the frequency of natural disasters had increased, leading to an imperative need for a product to cater to risks from climate change. He said that a faster claim settlement mechanism was the need of the hour. Building domestic resilience was something that the regulator had been focussed on to reduce dependency on foreign reinsurers and prepare the insurance industry for any shocks in the future.
Tripathy also said that there was a gap in upskilling and effective education within the insurance industry. "Despite the rapid growth during the last three years in the industry, the gap in upskilling employees and the insurance education space is actually lacking. It is not only lacking in number of institutions, but in the quality of education that we impart," he said. End
Reported by Srijita Bose
Edited by Avishek Dutta
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