Insurance in India may soon become simpler and cheaper. From June 2026, the Bima Sugam platform is expected to introduce zero-commission standard insurance products, according to ET Now.
This move is expected to make policies more affordable and easier for customers to understand.The platform is being developed as a one-stop solution where people can buy, renew and even make claims without dealing with multiple intermediaries.
The biggest change is the removal of commissions. Instead of agents earning a cut, insurers may pay a small platform fee of around 5–7%. This could bring down premiums, as companies save on distribution costs.
Customers can also expect standardised products. These policies are likely to come with a basic structure along with a few add-ons, making it easier to compare and choose without confusion.
As per reports, the insurance products will be listed on Bima Sugam phase wise.
Motor insurance for new vehicles is likely to go live first in June 2026. Renewal policies may follow from August. Around the same time, health insurance products are also expected to be introduced on the platform. Term insurance plans, which offer life cover, are likely to be added by September 2026.
India is the 10th largest insurance market in the world, and it’s poised to be 6th largest insurance market in the world by 2032, ahead of Germany, Canada, Italy and South Korea.
As per Swiss Re, “India’s insurance market poised for rapid growth India is one of the fastest growing insurance markets in the world. In terms of total premium volumes, it was the 10th largest globally in 2021, with an estimated market share of 1.9%, and the second largest of all emerging markets. We forecast that premiums will grow by an average of 9% per annum (in real terms) over the next decade, stronger than the 7.5% annual average of 2015–2021. At this rate, India will be the 6th largest insurance market in the world by 2032, ahead of Germany, Canada, Italy and South Korea.
Thus the Government has launched Bima Sugam to make buying insurance easier.
- Bima Sugam will connect and empower all Insurance Stakeholders
- Bima Sugam would be a revolutionary digital platform (an Amazon-like one stop digital platform) that innovates, develops, and integrates advanced technologies to automate and digitize the processes for multiple stakeholders. The stakeholders include insurance companies, policy holders’, intermediaries, insurance repositories and external data sources etc.
- All insurance requirements, including those for life, health, and general insurance (including motor, travel, etc.), will be met by BIMA Sugam
- The online platform, backed by the regulator, the Life Insurance Council and General Insurance Council will allow individuals to fulfill all their insurance needs, right from buying the policy to claim settlement and much more.
