The Bima Sugam platform, envisioned as a one-stop digital marketplace for insurance products, may face some more delays, with its ownership, governance model, and operational framework all currently under review, according to people familiar with the matter.
The launch, originally slated for early 2024, may now slip to late 2025 or even 2026, according to sources.
Bima Sugam is designed as a digital marketplace that will allow customers to buy, sell, and manage various insurance policies including life, health, and general on a single platform. The idea was first conceptualised by former IRDAI Chairperson Debashish Panda in late 2022 as part of the regulator’s broader push toward digital public infrastructure for insurance penetration. To formalise this, the regulator issued the “IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024” on March 22, 2024.
Multiple sources, including a former IRDAI member and the CEO of a life insurance company, told Moneycontrol that governance concerns may be central to the restructuring discussions. The Department of Financial Services (DFS) may prefer a model where IRDAI retains regulatory oversight but is kept out of daily operations. Such a separation is viewed as essential to ensure neutrality and prevent perceived conflicts of interest.
Emails sent to IRDAI and the finance ministry remained unanswered until the time of publication.
The sources cited indicated, that the finance ministry may now ask IRDAI to completely step away from ownership, and to explore options such as transferring control to the Life Insurance Council or creating an independent entity with industry participation to manage the marketplace.
“The idea of a neutral governance model is critical, especially when the platform is intended to facilitate the sale and purchase of insurance products from multiple players,” an industry executive said.
Even as governance takes center stage, the operational and funding blueprint remains undefined.
According to sources, the finance ministry may believe that investments committed by insurers so far are inadequate to make the platform fully functional.
A special purpose vehicle (SPV) was created in early 2024 for Bima Sugam with contributions from both life and general insurers.
A total of 58 insurers, including life, general, health insurers, and the national reinsurer GIC Re, were invited to participate in the equity contribution for the Bima Sugam India Federation.
This includes major players such as LIC, HDFC Life, ICICI Prudential Life, SBI Life, and several general and health insurance companies. However, some public sector general insurers, including Oriental Insurance, National Insurance, and United India Insurance, were reportedly not allowed to invest due to policy constraints.
So far, only a few insurers have publicly disclosed their investments.
New India Assurance has reportedly invested around Rs 5 crore in two tranches -- Rs 0.1 million in November 2024 and Rs 4.99 crore in March 2025.
Similarly, Niva Bupa Health Insurance has invested Rs 5 crore for a 1.51 percent stake, while ICICI Lombard General Insurance has also approved an investment of Rs 5 crore, though its exact stake percentage has not been disclosed.
HDFC Life and SBI Life have also approved an investment of Rs 6.6 crore each for 10 percent stake for each. While ICICI Prudential Life is expected to participate, its investment details have not been publicly disclosed.
According to industry sources, roughly Rs 300 crore has been mobilised from insurers, which is close to the target set by IRDAI. However, a significant funding gap of nearly Rs 200 crore remains to meet the five-year requirement of Rs 500 crore, raising concerns about whether future capital commitments will come in on time.
Critical elements including technology architecture, management structure, and the revenue model are also yet to be finalised, sources said, adding that additional capital infusion and clarity on who will bear future costs are expected to be part of the ongoing review.
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