Bima Sugam to launch digital insurance marketplace this year; governance structure still unclear

Positioned as a Digital Public Infrastructure, Bima Sugam aims to deepen insurance penetration and promote transparency in the sector.

The Bima Sugam India Federation (BSIF) has announced that its much-anticipated digital insurance marketplace, Bima Sugam, will go live this year.

The platform is being developed in partnership with Protean eGov Technologies and will serve as a one-stop, paperless and transparent gateway for buying, selling, and servicing insurance products, a statement said.

However, there is still no official clarity on the governing body or the operational framework for the platform. This development comes amid reports by Moneycontrol last week suggesting that Bima Sugam is set to undergo a governance and operational overhaul, with indications that IRDAI may not retain control of the platform.

According to BSIF, the technology build and insurer engagement are progressing in line with the board-approved timelines.

Initially, the marketplace will open for insurers to start pilot integrations, followed by phased onboarding of insurers and intermediaries. Customer access will be enabled gradually, ensuring a seamless and secure experience before the full-scale rollout.

“This is a one-of-its-kind, industry-owned digital marketplace designed to revolutionise insurance in India,” said Prasun Sikdar, Managing Director & CEO of BSIF.

The initiative is supported by an authorised capital of Rs 500 crore and a paid-up capital of Rs 310 crore, with shareholding spread widely across life, general, and health insurers, ensuring that no single entity holds a controlling stake, which is in line with what Moneycontrol reported last week.

BSIF operates as a board-managed company under the Insurance Regulatory and Development Authority of India’s (IRDAI) Bima Sugam – Insurance Electronic Marketplace Regulations, 2024.

The statement means that BSIF (Bima Sugam India Federation) was created and operates in accordance with IRDAI’s regulations, specifically the 2024 framework for Bima Sugam, but that may not automatically imply IRDAI will control or manage it.

As part of its development process, BSIF recently held structured working sessions with around 150 representatives from across the insurance industry to co-create an integration handbook. This guide will support a smooth onboarding process and standardise APIs for interoperability.

Positioned as a Digital Public Infrastructure, Bima Sugam aims to deepen insurance penetration and promote transparency in the sector. The marketplace will also enable policy servicing, claims settlement, and grievance redressal through a unified digital platform, aligning with the national vision of ‘Insurance for All by 2047.’