India, 5th December 2025: The Insurance Brokers Association of India (IBAI), representing more than 798 licensed brokers and over 19,000 trained Broker Qualified Persons (BQPs), met with Mr. Ajay Seth, Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), and presented a comprehensive set of policyholder-centric recommendations aimed at improving accessibility, transparency, and digital enablement across the insurance sector.
During the meeting, IBAI reaffirmed the growing contribution of insurance brokers who now account for 36% of India’s non-life premium and their strengthening role in deepening market penetration and supporting policyholders through trusted risk advisory. The discussions also underscored IBAI’s commitment to continued collaboration toward India’s vision of ‘Insurance for All by 2047.’
The recommendations from IBAI revolve around three major national issues:
- Quick and just claims handling: A suggestion for the establishment of an IRDAI-led, tech-first digital Alternative Dispute Resolution (ADR) system for small and retail/MSME claim disputes. The platform, which is similar to established securities mediation systems, intends to give a resolution in 7 days, cut litigation backlog by up to 80%, and really enhance policyholder confidence.
- Changing capital structure to increase distribution: A petition to allow the removal of capital limits that prevent single-investor involvement in brokerage firms so that the brokers especially tech-led and big brokers can fund, distribute and serve the market deeply without the issue of conflict of interest.
- Turning insurance awareness into a national campaign: A proposal to recognize April 19 (IRDAI Foundation Day) as National Insurance Awareness and Policyholder Day, backed by a countrywide communication campaign, trade-body outreach, academic collaboration, and a nationwide policyholder awareness initiative that would be launched at the Prime Ministerial level.
Representing the issue, Mr. Narendra Kumar Bharindwal, President of IBAI said, “The brokers’ role is to safeguard the policyholder, and to help increase the insurance penetration in all walks of life. The faster claims resolution, wider distribution, and stronger awareness brought by the reforms will benefit the whole country. We count on IRDAI’s vision and the joint effort of the industry to speed up India’s path to just, transparent, and considerate insurance growth.
Moreover, a technology-based ADR platform regulated by IRDAI could be a turning point for retail and MSME customers by providing fast and cheap dispute resolution. In the same way, liberalizing capital restrictions will allow brokers to extend their distribution, put money into technology, and reach the areas that are not served. Additionally, the proclamation of April 19 as National Insurance Awareness and Policyholder Day will create a huge awareness and make the understanding of insurance more available to the people. These reforms will together lead India closer to a policyholder-first and globally aligned insurance ecosystem.”
The Chairman acknowledged IBAI’s contributions toward intermediary training, compliance, and promoting insurance awareness. The meeting further reflected a shared intent to explore collaboration on grievance reforms and digital distribution. IBAI emphasised that such reforms would enhance insurance access, strengthen public trust, promote fair practices, and support the sector’s long-term growth.
Additionally, on 6th October, IBAI met Hon’ble Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman and submitted a comprehensive set of advocacy proposals focused on strengthening insurance penetration, enhancing policyholder protection, and supporting a more robust insurance ecosystem in India:
- Enhancing Insurance Penetration through Mudra Loan Beneficiaries
Proposal to embed suitable insurance covers with Mudra Loans, ensuring protection for
entrepreneurs and small borrowers.
- Making Insurance Education Awareness a People’s Movement
Proposal to declare 19th April, the foundation day of IRDAI as National Insurance
Awareness and Policyholder Day, to mobilize nationwide awareness.
- Insurance Inclusion through CSR
Proposal to consider Payment of Insurance Premium for Vulnerable Groups and Adoption of
Villages under Insurance for All as eligible CSR expenditure.
- Strengthening Corporate Governance Risk Oversight
Recommendation to introduce a Risk-Based Insurance Oversight Framework in line with
global best practices to promote stability and transparency.
- National Insurance Claims and Grievance Redress Platform
Proposal for a unified, technology-driven platform to streamline claim settlements and
grievance handling across all insurers for the benefit of policyholders.
