What's happening with Bima Sugam, the digital insurance aggregation platform?

The highly-anticipated launch of Bima Sugam—a digital insurance platform that seeks to integrate all services like health, general, and life in one place—has been delayed for the second time. Initially slated for January 2023, the Insurance Regulatory and Development Authority of India (Irdai) pushed the launch date to August and now to June 2024.

The industry is eagerly awaiting this platform, which aims to simplify insurance processes and bring a smooth transactional experience to users. So, though there have been delays, the focus remains on creating a robust and secure platform that meets consumer expectations.

Naval Goel, Founder and CEO of insurance comparison portal PolicyX.com, says, “Irdai Chairman Debasish Panda has rescheduled its launch date. According to him, the platform is still going through some last-minute [amendments], such as addressing the claim settlement process, incorporating a faster and more customer-friendly ombudsman process, and eradicating the major glitches of the platform.”

Indeed, Bima Sugam is a complex endeavour involving several regulations, technologies, and systems that need to work seamlessly together. The primary reason for the delay could be regulatory challenges. Given the constant updates that insurance rules undergo, it would take considerable effort to maintain and ensure full compliance.

Abhishek Bondia, Principal Officer and Managing Director at tech-enabled insurance broker SecureNow.in, says, “Launching a platform like Bima Sugam is complicated because there are many stakeholders—insurers, intermediaries, and customers. The time being taken is very much in line with the launch timelines of such complex projects.”

Secondly, technology is a big factor. Technical glitches, security threats, potential data breaches, etc., can lead to severe operational and reputational damage. “The regulator is working on ensuring a glitch-free [experience on] the platform. It is working on pain points such as the claim settlement process and the ombudsman network, as policyholders face many issues,” says Goel.

Finally, user experience and market readiness are crucial. “A platform of this scale takes time as stakeholders are aligned and the platform is built bottom-up. The regulator is best placed to address differing views because they put policyholder interest at the heart of all decisions. In the end, that... provides the bedrock for an effective platform,” says Bondia.

@imNavneetDubey