Irdai’s Deepak Sood calls for new distribution model to expand rural insurance reach
India’s insurance industry must rethink its distribution strategy to extend coverage beyond metros and urban centres, said Deepak Sood, Member (Non-Life), Insurance Regulatory and Development Authority of India (IRDAI), at the Global Fintech Fest 2025.
“In the last decade, India has built one of the most powerful digital public infrastructures anywhere in the world. The digital backbone gives us the tools to make insurance truly universal—but to do that, we need to rethink distribution,” Sood said.
He noted that the existing agent- and broker-based model has served well but limits outreach to familiar customer segments. Highlighting Bima Sugam, the digital marketplace being developed under IRDAI’s guidance, Sood said it will enable insurance access in every corner of India. He added that artificial intelligence can help design more tailored, trustworthy products while ensuring equitable advice for all citizens, regardless of income or location.
IRDAI issues warning to Shriram Life Insurance for policy norm violations
The Insurance Regulatory and Development Authority of India (IRDAI) has issued a warning to Shriram Life Insurance Company over violations related to policy issuance and grievance redressal. The insurer has been directed to strengthen its systems to ensure compliance with regulations governing free-look cancellations and policy bond dispatch.
In its order, the regulator said, “There shall be no undue delay in processing free-look cancellation requests and the consequent refund of premiums.” It also instructed the insurer to improve complaint handling mechanisms for cases of non-receipt of policy bonds.
IRDAI has asked Shriram Life to present the order before its Board in the next meeting and submit a copy of the minutes along with an Action Taken Report within 90 days. The advisory emphasises the regulator’s focus on consumer protection and adherence to operational timelines.
IRDAI mandates insurers to adopt board-approved anti-fraud policy
The Insurance Regulatory and Development Authority of India (IRDAI) has directed all insurers to implement a Board-approved Anti-Fraud Policy as part of the new Insurance Fraud Monitoring Framework Guidelines 2025. The move aims to strengthen fraud risk management and establish zero tolerance toward fraudulent activity.
The framework requires insurers to develop procedures for preventing, detecting, reporting, and mitigating fraud across all business operations. Insurers must review their policies annually and identify “red flag indicators” across activities such as underwriting, claims, and digital transactions.
To counter cyber and new-age fraud, insurers must also establish a robust cybersecurity infrastructure and maintain databases for incidents, customer verification, and access control. The regulator has instructed insurers to set up a Risk Management Committee (RMC) to oversee the framework’s implementation. IRDAI said the fraud risk management approach should reflect each insurer’s business profile, risk exposure, and distribution structure.