New Delhi, Nov. 3 -- As insurance penetration in India continues to hover around a low 4% of GDP, it is now time for the government and Insurance Regulatory and Development Authority of India (IRDAI) to expeditiously usher in a framework for standalone micro-insurance companies (SAMIs). These insurers will exclusively offer 'micro insurance products' and to that extent will differ from general insurers, life insurers and standalone health insurers.

In August 2020, the IRDAI published a report of the Committee on the Standalone Micro-insurance Company, which was constituted to study the feasibility of SAMIs in India. After a cross-jurisdictional analysis of the merits of letting SAMIs operate, the panel concluded that their establishment ...