Lookback @ 2023: How Budget tax setback, IRDAI’s expenses and commission regulations affected the life insurance industry this year | Simply Save

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Work on Bima Sugam – a digital, industry-wide platform for selling, servicing policies and selling claims – which is billed as the UPI moment for insurance is also underway.

To look back at the key developments of year 2023 and look at what could be in store in 2024, Moneycontrol’s Preeti Kulkarni spoke to Vighnesh Shahane, Managing Director and CEO of Ageas Federal Life Insurance. Here are the key highlights from the interaction:

- I do not expect any cataclysmic changes in Budget 2023. We have been asking for a separate tax deduction bucket for life insurance policies and tax-free status to annuity income, but nothing’s come our way so far.

- No major announcement is likely to come through in the interim Budget 2024

- Do not foresee any hike in term insurance rates for now.

- Given the pace of reforms that IRDAI has introduced, its vision of ‘Insurance for All by 2047’ could be achieved sooner

- The state lead insurer plan (where one insurer takes the lead in pushing insurance in one state) is in place; Bima Sugam, a one-stop shop for insurance products, Bima Vistaar, which is a composite product and Bima Vahak (women-led distribution model) will give a further push to deepening penetration.

- The regulator’s EoM rules have made the industry more cost conscious, which is a good sign.

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- Ageas Federal has not had to rejig product portfolio, we have been launching products across Ulip, participating, non-participating, term insurance and pension categories. It is a balanced portfolio – non-par products constitute 70-75 percent of the portfolio, Ulips 20 percent and participating products account for 10-12 percent.

- Non-participating, guaranteed return policies with long-term payout options have done well, with many insurers, including us, introducing this product to lock into high G-sec rates.