Page 9 - Insurance Times January 2024

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velop policies that would address those.
IRDAI forms task force to study impact of DPDP Act
The frequency of natural disasters has
IRDAI has formed a task force to assess how the Digital Personal Data Protec-
tion Act, 2023, will impact the insurance industry, according to a circular gone up, which necessitates a proac-
issued by IRDAI. In a communication regarding the establishment of the task tive approach and the need to adapt by
force, the regulator mentioned that the Act's provisions would also affect the leveraging advanced climate modelling
insurance sector overall. The task force will include leaders from prominent to anticipate and mitigate climate-re-
lated risks. "Policies aimed at promot-
life and general insurance companies, such as the chairman of LIC, the CEO of
ing sustainability and resilience, while
HDFC Life, the CEO of ICICI Lombard General Insurance, and the CMD of
General Insurance Corporation. Officials from the IRDAI and a legal expert factoring in climate-related concern,
must be developed," he said.
from a leading law firm will also be members.
Against the backdrop of the increased
The regulator has given the task force a one-month timeframe to present its
report. This decision to analyze the ramifications aligns with the Union Minis- usage of technology and the associated
try of Law and Justice's notification of the DPDP Act, 2023. In the directive risks in the financial sector, the regula-
forming the task force, IRDAI stated that the act seeks to establish a compre- tor emphasised the difficulty in forming
hensive framework for the processing of digital personal data, acknowledging regulations that would provide solutions
to those.
individuals' right to safeguard their data and the necessity of processing such
data for lawful purposes.
IRDAI Ups scrutiny of
IRDAI said that the act encompasses a range of elements, including its appli-
cability, reasons for processing personal data, consent structure, overall re- broking deals, approvals
sponsibilities of data fiduciaries, the right to access information regarding take longer
personal data, and penalties for non-compliance.
IRDAI has increased scrutiny on the ul-
timate beneficiaries in the transfer of
IRDAI considering SLBC-like According to the arrangement, district- shares within the insurance broking sec-
level units will be driving state insurance tor. This increased diligence has led to
body: Panda
benefits. an extension in the approval timelines,
IRDAI is considering the creation of a with the three-four month period
The SLBC is the highest body of bankers
body like the state-level bankers' com- stretching (on average) to beyond nine
at state level, ensuring coordination
mittee (SLBC), Chairman Debasish months.
Panda said. "Several state governments between the government and banks.
This is in agreement with what Panda The sale of Aditya Birla Insurance Bro-
have taken the initiative to constitute
state-level committees and some states had said in May. kers to Samara Capital, filed in March,
have constituted district-level commit- Panda expressed concern on rising is currently awaiting approval from the
tees," Panda said while speaking at the cyber and climate-related risks and the IRDAI.
Business Standard BFSI Insight Summit. need for insurance companies to de- The regulator, in this particular case, is

The Insurance Times January 2024 9