New Delhi. If you feel that taking insurance has become expensive, then this news is useful for you. Insurance Regulator IRDA is going to implement many such major reforms in the next 4-6 months, which will make insurance affordable and you will get full value for money. The biggest hit of these changes will be on the huge commissions that insurance companies pay to agents and banks.

Bima Sugam: One platform for all

Bima Sugam will be launched soon – a digital marketplace where you will be able to compare policies of all insurance companies like Amazon-Flipkart. Price, features, claim settlement ratio – everything at a click. When everything is open, companies will have to keep premiums low on their own.

Question of Rs 1 lakh crore

Imagine, in the financial year 2025, insurance companies will distribute around Rs 1 lakh crore in the name of commission alone. This is the money that comes out of your pocket as premium. Both RBI and IRDA have expressed concern over this. Now the regulator is working on rationalizing this distribution cost.

Scissors will work at 30% expense

Currently, insurance companies spend 30% of your premium on distribution and admin work. Of this, 17-18% goes directly into the pockets of banks, NBFCs and agents. IRDA is now preparing to reduce it, especially in health insurance where premiums have increased rapidly.

Lower cost, faster process and more transparency

Regulator IRDA is creating a consent-based data registry, where all the policy and claims data will be stored. This will speed up underwriting, prevent fraud and make policy portability easier. Meaning – lower cost, faster process and more transparency.

Now companies will not be able to hide the truth

IRDA is tightening the noose on insurance companies. Now companies will have to openly disclose their products, returns and claim settlement ratio. When everything will be public, there will be competition among companies for better service and competitive pricing.

What will the common man get?

You will get direct benefit from these reforms. If commission expenses decrease, the premium may remain stable or reduce. You will be able to choose a better and affordable policy by comparison on the digital platform. You will know where your money is going and the digital infrastructure will speed up the claim process. The impact of these changes will be especially visible in health and life insurance, where rising costs have put pressure on the pockets of the middle class.