Bima Sugam’s structure as a not-for-profit entity jointly promoted by insurers and intermediaries signals a blend of regulatory oversight and industry participation — an encouraging governance model for digital public infrastructure. Photo: X/@BimaSugam_India
Expectations have grown around Bima Sugam, the unified insurance digital marketplace inaugurated mid-September this year as the platform promised to simplify how Indians buy, service and manage insurance policies.
With India’s insurance penetration at about 4% of GDP, Bima Sugam carries the potential to widen access, boost transparency and build trust. The website shows the portal is live but not yet open for business. Banners on the home page say marketplace is ‘coming soon.’
When fully functional, Bima Sugam aims to be a one-stop destination for all insurance needs — from product discovery and quote generation to purchase, renewal, claims and grievance tracking. It is designed to integrate product information across insurers and categories, allowing customers to make informed choices.
Private aggregator websites offer similar services but the difference is in what Bima Sugam represents — a regulator-backed, industry-supported digital public platform aimed at bringing credibility, interoperability and standardisation. It aligns with the national mission of ‘Insurance for All by 2047’ of the Centre and the IRDAI (Insurance Regulatory and Development Authority of India).
If executed well, Bima Sugam could do for insurance what UPI did for digital payments and ONDC aims to do for e-commerce. Its structure as a not-for-profit entity jointly promoted by insurers and intermediaries signals a blend of regulatory oversight and industry participation — an encouraging governance model for digital public infrastructure.
We can revisit a few expectations we outlined in CoverNote in 2022 when the idea was announced.
Universal participation: Every insurer should be present and list all products. This will expand choice while highlighting and addressing a persistent issue — too much choice.
The proliferation of policy variants shows innovation of the industry. But too much choice can overwhelm and confuse. The Securities and Exchange Board of India (SEBI) faced a similar challenge with mutual funds and resolved it via standardisation. IRDAI’s introduction of standardised policies in key segments was a step in this direction; Bima Sugam can advance it by ensuring comparability of features.
Comparability and clarity: Insurance benefits often sound similar but vary widely in meaning. A transparent comparison framework can help customers choose wisely. Simplifying insurance language — coverage, exclusions, co-pay, top-up — would also make the process more accessible and lead to standardising underlying benefits of standard terms.
Renewals and mobility: Auto-renewal and secure auto-debit options can prevent unintentional policy lapses and benefit clients and insurers. Importantly, a dedicated mobile app is essential for the smartphone generation that prefers to transact entirely online. If Bima Sugam ensures clarity, comparability and confidence, it can redefine how India engages with insurance.
(The writer is a business journalist specialising in insurance and corporate history)
Published – October 20, 2025 12:52 am IST
