What Is Bima Sugam, Set To Be Launched in 2025? 6 Key Features Of India’s First E-Marketplace For Insurance

Bima Sugam: India's first and one-of-its-kind online marketplace for insurance is all set to be launched in a phased manner in 2025. The online platform will initially open for insurers and as a pilot project, and will later be available for other stakeholders, including intermediaries and other companies, said Bima Sugam India Federation (BSIF) on Friday

The BSIF board has approved a timeline for the launch of Bima Sugam platform. The first step would be to launch Bima Sugam's official website. It will go live soon, according to a statement by BSIF.

The company also said the official website of Bima Sugam will go live soon. The technology build and insurer engagement are progressing, according to the BSIF board-approved timelines.

What is Bima Sugam?

Bima Sugam is the brainchild of the Insurance Regulatory and Development Authority of India (IRDAI) and will be launched as part of its broader Bima Trinity. Bima Sugam will act as an online insurance marketplace for buying, selling and servicing insurance policies as well as settling claims.

6 Key Features of Bima Sugam

-It will act as an online marketplace for insurance products' sale, purchase and registering claims for them.

-Other than providing a one-stop platform for sale, purchase and registration of claims for Bima Sugam, it will also serve as a unified platform that will integrate with the government database, insurers, intermediaries, and insurance repositories.

-Customers can get their insurance policies in electronic format which may also lead to a reduction in streamlining processes and reducing administrative costs.

- Bima Sugam will have the potential to become the largest online market for insurance products and services, which has not been practised anywhere in the world, according to Sanjiv Singh, Head, Marine & Specialty lines, GI Council.

-The full implementation of the platform would lead to the innovation, development, and integration of advanced technologies to automate and digitise the processes for multiple stakeholders. The stakeholders include insurance companies, policy holders', intermediaries, insurance repositories and external data sources etc.

-Bima Sugam will include all insurance requirements related to life, health and general insurance even of motor, travel, etc.

-The online platform of Bima Sugam will be backed by the Life Insurance Council and General Insurance Council.

Focus on Regulatory Alignment

Bima Sugam is part of the Insurance Regulatory and Development Authority of India's (Irdai) broader initiative known as Bima Trinity. This initiative also includes Bima Vistaar, a rural-focused composite insurance product, and Bima Vahaak, a women-centric agent network selling Bima Vistaar products through the Sugam platform. The phased approach reflects a focus on reliability and regulatory alignment.

BSIF recently concluded structured working sessions involving around 150 representatives from the insurance industry. These sessions aimed at co-creating an integration handbook to support gradual onboarding and standardised application program interfaces (APIs). This collaborative effort underscores the industry's collective commitment to making insurance more accessible.