The insurance regulator IRDAI has constituted a broad panel under Yegnapriya Bharath,chief general manager, IRDAI, on Thursday to examine how technological advancements particularly wearable and portable devices can be a part of a regulatory policy frame-work and be harnessed for the growth Indian insurance industry,
The range of issues that the panel would focus-:
a).Examine how technological advancements, particularly wearable and portable devices may be treated from the point of view of risk improvement, risk assessment and use/distribution of such devices as part of policy design,.
b). Understand the practices of other jurisdictions in this area,
c). Suggest the policy framework that needs to be put in place keeping in view the interests of policyholders.
d). Examine the various aspects that would impact the pricing,
e). Comment on/ make suggestions regarding any other matter that is relevant or connected to this area,
“Indeed, it is important to understand technology trends and their various implications for insurance even while seeking to harness the potential and advantages they seem to offer.While encouraging innovation, the regulator must run alongside it, keeping in view the interests of policyholders,’’ said PJ Joseph, member, IRDAI in his note on .
The note explains that use of wearable and/or portable devices in insurance is a subject that frequently comes up in the context of Financial Technology (FinTech).
IRDAI’s Health Insurance Regulations recognise the role of ‘Wellness’ in risk assessment and product design.
In the context of both Health Insurance and Life Insurance, wearable devices could be used to measure personal fitness, incorporate a healthy lifestyle etc. When it comes to Motor Insurance, recently the IRDAI had put up a Discussion Paper on the subject of ‘Telematics’ in Motor Insurance.
Some other members of the panel are: .Tapan Singhel, CEO, Bajaj Allianz General Insurance Company, V.Jayanth Kumar, CGM, IRDAI, .Ashish Mehrotra, CEO, Max Bupa Health Insurance Co, Gouri Rajan, DGM,The New India Assurance Company,
The working group has been asked to submit its report containing recommendations within eight weeks.
Meanwhile, IRDAI has formed another committee under PJ Joseph, member(non-life),
to consider various issues that need to be examined before considering the request of IIISLA(Indian Institute of Insurance Surveyors and Loss Assessors ) for chartered status
The IIISLA was formed as Sec.25 company in 2005 and promoted by IRDA for the holistic development of the profession of Surveying and Loss Assessment.
There is a request from IIISLA with regard to granting of chartered status to them.
“ The issues raised, deserve to be discussed and debated by a select group of insurers, surveyors and representatives from the regulator and government,’’ said note signed by Joseph.
Some other members of the panel are: Bhumika Verma – Joint Director, DFS, Ministry of Finance, Member, Suresh Mathur, ED (Surveyors), IRDAI, President, IIISLA, Member.
The committee has to come up with the recommendations before 31st March, 2018.