The Insurance Regulatory and Development Authority of India (IRDAI) has held a discussion centred on strengthening policyholder protection, improving grievance redressal standards and addressing operational challenges faced by the insurance sector.
The discussion took place at a high-level meeting, convened by the IRDAI with Chief Compliance Officers (CCOs) and Grievance Redressal Officers (GROs) of insurance companies.
IRDAI Chairman Ajay Seth emphasised the centrality of trust in insurance and the critical role played by compliance and grievance redressal functions in upholding it. A detailed review of compliance practices and the effectiveness of existing grievance redressal mechanisms was then carried out.
An analysis of consumer complaints and emerging trends in policyholder issues further shaped the conversation, highlighting areas where the industry must enhance its responsiveness.
IRDAI also expressed concern over the rising number of complaints and emphasised the need for insurers to significantly improve the quality and timeliness of resolutions. Insurers were advised to develop a clear and standardised operating procedure for classifying consumer references into complaints and service requests.
The regulator urged insurers to adopt a more proactive, policyholder-centric approach and to strengthen their internal systems to ensure strict compliance with prescribed timelines.
Highlighting the need for deeper cultural alignment within organisations, Mr Seth said, “Compliance cannot be a department, it must be a mindset. Grievance redressal cannot be the end of a process; it must be our early warning system.
“When in doubt, choose the customer. If we do that consistently, trust will follow, growth will follow, and the industry will stand stronger."