Norms on Lead Insurer Scheme expected soon

Guidelines on the Lead Insurer Scheme are expected soon with the regulator having increased the push for State-wise insurance activity through periodic reviews and updates, according to industry players.

“It’s going to come very soon. They are going to be asking for periodic reviews, and the industry should be prepared to do a good job of their States because it is going to be reviewed regularly,” said a senior official at a private life insurer, adding that the progress updates could be quarterly or even more frequently during the initial period.

IRDAI has started reviewing the work through the focal officers appointed for each State. Insurance companies are currently required to furnish data and activities being undertaken at the district or gram panchayat level to these officers on a quarterly basis, insurers said.

Modelled similar to the Lead Bank Scheme, where each bank is responsible for driving financial inclusion and banking services in the one to two states assigned to them, the Lead Insurer Scheme is aimed at growing insurance penetration in the country as per the objective of ‘Insurance for All’ by 2047.

While IRDAI had assigned these States to insurance companies over a year back, so far the push had been minimal with no quantifiable targets as insurance companies were getting acquainted with their respective States and looking to tie up with the State government and local authorities.

However, momentum has now picked up and the issue is one of the top agendas for IRDAI, which has assigned broad targets to insurance companies to grow the business in their States by a certain percentage over the next couple of years.