Page 11 - Insurance Times March 2023

Insurance moving towards real time coverage Come out with insurance
The Indian insurance industry is undergoing a transition led by the digital revo- products for persons with
lution and innovations in the payments sector in the country, and moving to-
disabilities, mental illness:
wards more real time coverage aided by technology and datasets, according
to IRDAI Chairman Debasish Panda. Irdai to insurers
Regulator Irdai has asked general and
"For insurance, times are changing. We will be venturing into the world of
standalone health insurers to offer a
continuous underwriting and seamless insurance," Panda said at the IVCA (In-
specific cover for Persons with Disabili-
dian Private Equity and Venture Capital Association) Conclave.
ties (PWD), persons afflicted with HIV/
Conventional insurance is being altered owing to which "highly tailored offer-
AIDS, and those with mental illness.
ings" will be available on the table as insurers start handling massive data sets
In a circular, the Insurance Regulatory
from various sources using quantum computing, he said, adding that this will
and Development Authority of India
revolutionize risk modeling and decision making.
(Irdai) asked the insurers to determine
Citing the example of motor insurance, he said drivers will be able to see how
the price of the product in line with the
their insurance costs fluctuate every minute depending on the route they travel,
IRDAI (Health Insurance) Regulations,
the state of the roads and the way they drive - these will encourage them to
2016 (HIR, 2016).
drive more safely.
The insurers have been directed to put in
place a Board-approved underwriting
More insurance players, dressing the annual summit of the In-
policy that ensures that no proposal from
dian Private Equity and Venture Capital
wider range of products these categories of population is denied
Association.
insurance cover. The policy tenure of the
key to achieve insurance
In the past five years, the sector has product should be for one year and is re-
for all goal by 2047: IRDA grown 10 per cent each year, still insur- newable as per regulatory framework.
ance penetration is too low at 4.2 per
Chairman, Debasish Panda General and standalone health insurers,
cent in 2021 and we need to cover much
India needs more number of insurance more, he said. who have been issued a Certificate of
players, much wider range of products Registration to transact General and/or
"We're a diverse nation of 1.4 billion
and also more distribution partners to Health Insurance Business, have been
people. We can't have a one-size-fits-
achieve the insurance for all goal by asked to mandatorily launch and offer
all approach, instead we need more
2047, IRDAI chairman Debasish Panda their respective product immediately.
unique products that can meet the in-
said here. The insurance sector was Irdai has been set up to bring about
surance needs of both the super rich as
opened up more than two decades ago
well as the very poor. And such unique speedy and orderly growth of the insur-
and the market has grown much big- products cannot be served by the lim- ance industry (including annuity and
ger, but still there is too much scope for ited number of players we have today superannuation payments), for the
faster and deeper growth, he said ad- at 70. benefit of the common man.
The Insurance Times March 2023 9