The three-year tenure of Debasish Panda as the chairman of the Insurance Regulatory and Development Authority of India (IRDAI) concluded recently, leaving a notable legacy of consumer-focused reforms. Panda’s initiatives, including capping premium hikes for senior citizen health policies, increasing surrender values, and easing eligibility criteria, have prompted a significant reshaping of business strategies within the insurance sector.
These changes occurred against the backdrop of historically low insurance penetration in India, with life insurance at 2.8% and non-life at 1% as of 2023. These adjustments have pushed insurers to seek new ways to attract customers.
While these moves faced industry resistance, Panda remained steadfast. Industry experts suggest that the push for greater payouts will likely decrease mis-selling, reducing commission-based incentives. He also addressed issues of mis-selling through banks. At the State Bank of India’s (SBI) Annual Business & Economic Conclave, Panda emphasized the importance of banks as a low-cost, customer-focused distribution channel, advocating for transparency and choices for customers instead of aggressive sales tactics.
Despite the policy shifts, the industry still faces challenges. One of the most important priorities will be the implementation of “Bima Trinity,” Panda’s significant initiative, which encountered delays during his tenure.
Bima Trinity: A Digital Transformation
Proposed in 2022, the Bima Trinity project aims to create a comprehensive digital platform for insurance sales, services, and claims settlement, similar to Amazon’s model. The project comprises three parts:
- Bima Sugam (a digital marketplace)
- Bima Vistaar (a composite insurance product)
- Bima Vahaak (a women-led insurance distribution model)
Despite its significance, the launch was postponed multiple times—most recently slated for mid-2025. All three components are now nearing the final stages of implementation.
Looking beyond Bima Trinity, the transition to a risk-based capital framework and International Financial Reporting Standards (IFRS) are key regulatory developments. Industry insiders credit Panda for advocating the government’s “insurance for all by 2047” vision as well as increased foreign investment to increase competition and innovation. He strongly supported raising the foreign direct investment limit from 74% to 100%.
Under Panda’s leadership, IRDAI streamlined regulations and encouraged initiatives like the regulatory sandbox and use-and-file procedures. The “use and file” framework facilitated the launch of products like “pay-as-you-drive” motor insurance and unlimited-claim health policies. While Panda successfully implemented a risk-based capital framework, he struggled to persuade legacy insurers on public listing.
A senior executive at a private insurer noted, “Panda was as much a technocrat as he was a bureaucrat.” The regulator now faces the challenge of balancing public listings with industry concerns. With new leaders at both the Reserve Bank of India and the Securities and Exchange Board of India, all eyes are now on IRDAI.
