Bima Sugam 2026: IRDAI’s Plan to Launch Standardised Insurance Products in India

Source: Business Standard

Context:

The Insurance Regulatory and Development Authority of India (IRDAI) is set to launch standardised insurance products on the Bima Sugam digital platform in 2026.

The roadmap was finalised during a meeting between IRDAI and insurance company CEOs in New Delhi, marking a major step in digital transformation of India’s insurance sector.

What is Bima Sugam?

Bima Sugam is a proposed digital insurance marketplace designed to function as a one-stop platform for:

• Buying insurance policies
• Selling insurance products
• Policy servicing and management

It aims to create a unified, transparent, and efficient insurance ecosystem in India.

Objectives of Bima Sugam

Improving Accessibility

• Simplifies access to insurance products for citizens
• Promotes financial inclusion

Enhancing Transparency

• Standardised products make comparisons easier
• Reduces information asymmetry

Faster Service Delivery

• Quick policy issuance
• Efficient claims settlement

Boosting Insurance Penetration

• Encourages wider adoption of insurance across India

Phased Launch of Standardised Insurance Products

IRDAI plans a phased rollout in 2026:

• Motor Insurance: Expected by July 2026
• Health Insurance: Expected by August 2026
• Life Insurance: Expected by September 2026

Separate industry committees have been constituted to design these standardised products.

Nature of Standardisation

While products will be standardised in structure and features, insurers will continue to compete based on:

• Pricing strategies
• Underwriting practices
• Customer service quality
• Value-added offerings

This ensures a balance between uniformity and competition.

Public Insurance Repository (PIR) and Its Link with Bima Sugam

What is PIR?

The Public Insurance Repository (PIR) is a proposed centralised digital data infrastructure for the insurance sector.

It will:

• Consolidate insurance data
• Enable interoperability across stakeholders
• Support data-driven regulation

Key Features of PIR

• Consent-driven and legally compliant
• Covers entire policy lifecycle:
  • Policy issuance
  • Claims processing
  • Grievance redressal
  • Dispute resolution

Institutional Link

PIR will expand the role of the Insurance Information Bureau of India (IIB), established in 2009 for insurance data collection and analysis.