An open architecture for insurance agents, the review of rules covering investment distribution and the development of natural disaster insurance are among issues that the insurance industry in India wants the new federal government to address.
Insurance experts also say that rules and regulations governing the insurance sector should be simplified and streamlined, reported the Indo-Asian News Service (IANS).
"The new government should amend the laws governing the insurance sector and review the outdated Insurance Rules, 1939 and make amendments in line with the new age insurance sector requirements," Mr Conjeevaram Baradhwaj, insurance consultant told IANS. General elections were held in India from 19 April to 1 June 2024, resulting in the formation of a new government this month.
Two years back, the Indian government had proposed drastic changes to the two insurance laws, the Insurance Act 1938 and the Insurance Regulatory and Development Authority Act 1999. Allowing different types of insurers including captives, changing the investment provisions are some of the major amendments proposed by the Indian government to the insurance laws. These proposals represented unfinished work of the previous government.
Digit Insurance Group general counsel Sameer Bakshi told IANS that the hope is that the upcoming government will review insurance legislation, consider stakeholders' comments, and introduce a new Insurance Act to advance the Indian insurance industry to the next level.