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‘Expecting Bima Sugam To Bring More Uninsured People Into Insurance Is A Myth’: Nilesh Sathe

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‘Expecting Bima Sugam To Bring More Uninsured People Into Insurance Is A Myth’: Nilesh Sathe

‘Expecting Bima Sugam To Bring More Uninsured People Into Insurance Is A Myth’: Nilesh Sathe

Former IRDAI member Nilesh Sathe has questioned whether Bima Sugam can deliver the expansion in insurance coverage envisaged by the regulator, pointing to the limited adoption of similar online mutual fund marketplaces.

Bima Sugam alone is unlikely to bring a large number of uninsured Indians into the insurance ecosystem, former IRDAI member Nilesh Sathe said, calling the expectation that the proposed digital marketplace will automatically drive insurance penetration an “absolute myth”. Sathe questioned whether consumers, particularly those outside the digitally comfortable younger demographic, would move to an online insurance marketplace simply because it becomes available. “Who will buy online insurance from Bima Sugam? Most probably the youngsters in the age group 25 to 40. And youngsters don't have patience. If your Bima Sugam platform is not so robust, nobody will go to Bima Sugam. It is dynamic. Every new product which is launched by every insurance company has to be there. So it has to be dynamic,” he said. Advt

Mutual fund experience offers a warning Sathe drew a comparison with online mutual fund marketplaces, arguing that simply creating a digital platform does not guarantee that consumers will shift their purchasing behaviour. He said a similar marketplace for mutual funds was introduced by the Securities and Exchange Board of India in 2012, but online platforms still account for less than 8% of mutual fund purchases, according to his assessment. “What is the experience of mutual funds?


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