The Insurance Regulatory and Development Authority of India (IRDAI) expects insurance products to go live on the Bima Sugam digital platform by the end of September, while a consultation paper on distribution reforms is likely to be released by the end of July, said IRDAI Chairman Ajay Seth on Tuesday.Bima Sugam is a proposed digital marketplace that aims to bring insurers, distributors and policyholders onto a common platform, enabling customers to compare, buy, service and settle insurance policies digitally. Though the project has seen some delay, Seth said the final integration of products is expected by September-end.The regulator is also working on wider distribution reforms, and expects to issue a consultation paper before the end of July.Speaking at a public awareness event organised by the insurance awareness committee (IAC-LIFE), Seth said the reforms, along with Bima Sugam, are part of broader structural changes underway in the insurance sector.FDI in insuranceThe insurance industry is witnessing a significant rise in interest from foreign promoters looking to increase their ownership after the government allowed 100 per cent foreign direct investment (FDI) in the insurance sector.“In the last 10 years, the economy of our country has increased two-and-a-half times. The life insurance sector’s top line also increased 2.5 times. One was 2.5, another was 2.6. No substantive difference,” he said.“The sector has the potential to grow much faster than what has been possible so far. And there comes the economics of the sector, how do we improve upon it?” Seth asked.IRDAI has recently granted two new general insurance licences, including one approved just a day earlier. While general insurance is currently growing faster than life insurance, Seth said the life insurance industry has the potential to grow at a much faster pace, supported by rising incomes and a large protection gap. “The life insurance sector is at a crossroads where it has to look for, or rather search for, its value proposition,” he said.Insurers will have to expand their presence beyond metro markets and focus more on Tier-II and Tier-III cities, as well as rural areas to unlock the next phase of growth. There is a need to cater to consumers across income groups and build greater trust in insurance products, he said.He also said insurance companies should pursue IPOs only when there is a genuine need to raise capital, rather than merely for the sake of transparency.The IRDAI chief also called for stronger governance standards in the sector. A portion of the remuneration of insurance key managerial personnel (KMPs) should be linked to product performance, claims settlement and grievance redressal, he said.Published on June 30, 2026