Insurance policy tagging will strengthen accountability: IBAI chief

In an interview with Mint, Narendra Bharindwal, president of the Insurance Brokers Association of India (IBAI), discusses what the reforms mean for brokers, whether they can curb mis-selling, the implementation challenges ahead, and how the role of insurance intermediaries is evolving in an increasingly digital market.

Edited excerpts:

The new regulations require every policy sale to be tagged to an individual salesperson. Do you see this as a game-changer in curbing mis-selling, or will implementation be the bigger challenge?

This is a significant step towards strengthening accountability and consumer protection. Assigning responsibility to an identified salesperson enhances transparency and creates greater ownership of the advice and service provided to customers.

Implementation will naturally require investments in technology, training and internal governance, particularly for firms with large distribution networks. However, the industry has consistently adapted to regulatory reforms, and we are confident this framework will strengthen customer trust and improve the quality of insurance distribution.

Irdai has replaced periodic registration renewals with perpetual registration. How much will this reduce the compliance burden for brokers, especially smaller firms?

Perpetual registration is among the most progressive ease-of-doing-business reforms introduced by the regulator. It eliminates repetitive procedural requirements, allowing intermediaries to focus more on governance, customer service and business development rather than administrative renewals.

That said, perpetual registration should not be mistaken for lighter regulatory oversight. Compliance remains continuous. The reform shifts the focus from periodic paperwork to ongoing compliance and responsible conduct.

For smaller brokers, the benefits are particularly significant, reducing administrative costs and uncertainty while allowing them to invest more in technology, talent and customer service.

What will be the biggest operational change brokerage firms will have to undertake to comply with the new framework?

The biggest transformation will be strengthening governance through technology.

Brokerages will increasingly need integrated digital systems that maintain complete audit trails—from customer advice and documentation to policy issuance, remuneration, servicing and claims support. Firms will also need stronger compliance monitoring, better data governance and structured training programmes.

The future of insurance distribution will be built on robust processes, documented advice and technology-enabled compliance rather than manual supervision.

Should policy persistency, complaints and claim outcomes become part of how intermediaries are evaluated, rather than premium collected alone?

Absolutely. Insurance distribution should increasingly be assessed on customer outcomes rather than business volumes alone. Metrics such as policy persistency, complaint ratios, quality of advice, grievance resolution, customer retention and claims support provide a more holistic measure of an intermediary's contribution.

Insurance is a long-term promise, and success should be measured by how well that promise is fulfilled throughout the customer journey.

How is the role of insurance brokers evolving as insurers invest more in digital and direct channels? Do you see competition or complementarity?

We see complementarity rather than competition. Digital channels improve accessibility and efficiency, while brokers provide personalised advice, risk assessment, product comparison and post-sales support, particularly during claims.

As insurance products become more sophisticated, the value of professional advice increases rather than diminishes. Technology will enhance brokers' capabilities, but trusted advisory services will remain central to informed customer decision-making.

After the removal of commission caps, have remuneration structures become more transparent across intermediaries?

The move to the Expenses of Management (EOM) framework has given insurers greater flexibility while placing stronger emphasis on governance, board oversight and prudent expense management.

Transparency is determined not just by commission structures but by robust governance, effective regulatory supervision and ensuring customer interests remain paramount.

The industry's focus should remain on delivering value to policyholders through quality advice and service rather than remuneration alone.

Do brokers feel pressure from insurers to prioritize certain products because of commercial arrangements? How can conflicts of interest be minimized?

Insurance brokers are licensed professionals with a fiduciary responsibility to act in the best interests of their clients. Regulatory requirements, internal governance mechanisms and professional ethics require brokers to recommend products based on customer needs and suitability.

Conflicts of interest are best managed through strong governance frameworks, transparent internal controls, documented advice processes, regular staff training and a customer-first culture. Maintaining public trust must remain the cornerstone of the broking profession.

What changes would you like to see in claims servicing across the industry?

The claims experience ultimately defines customer confidence in insurance. The industry should continue working towards faster settlements, greater transparency, simplified documentation, proactive communication, increased digital integration and stronger coordination among insurers, TPAs, surveyors and intermediaries.

Brokers have long played an important role in supporting policyholders through the claims journey, and closer collaboration among all stakeholders will further improve the customer experience.

Should brokers be given a more formal role in resolving claim disputes?

Brokers already play a significant role in facilitating claims by helping customers with documentation, communication and coordination with insurers.

There may be merit in exploring structured mechanisms that allow brokers to participate more formally in early-stage dispute resolution or mediation, without compromising the insurer's responsibility for claims adjudication or the independence of grievance redressal forums.

The objective should always be faster, fairer and more customer-centric dispute resolution while preserving the integrity of the claims process.