Why is it in the news?

• The Insurance Regulatory and Development Authority of India (IRDAI) celebrated its 25th Anniversary.

 More about the news

• Formed based on Malhotra Committee recommendations, constituted as an autonomous body in 1999, and incorporated as a statutory body in 2000 under the Insurance Regulatory and Development Authority Act, 1999.
• Aimed at facilitating the speedy and orderly growth of the insurance industry, ensuring speedy settlement of genuine claims, and establishing an effective grievance redressal mechanism.
• It operates under the Ministry of Finance.
• It certifies insurance companies, protects the interests of policyholders, and adjudicates disputes.

Significance in Transforming the Insurance Sector:

• Facilitated growth in insurance penetration (4.2% in 2021-22 compared to 2.71% in 2001-02) and insurance density ($91 in 2021-22 compared to $11.5 in 2001-02).
• Enabled the entry of new intermediaries such as corporate agents, bancassurance (selling insurance products through banks), and online sales, leading to increased employment opportunities.
• Accelerated digital transformation through initiatives like e-KYC, paperless policies, and digital payments.