Page 26 - The Insurance Times April 2025

ments in AI, blockchain, and digital automation paving the Strengthening Digital Outreach: Expanding digital plat-
way for seamless customer experiences. The health insur- forms to make insurance products more accessible to a
ance sector is expected to grow at a compound annual larger audience.
growth rate (CAGR) of 18% in the next five years, driven by
increasing awareness, rising medical costs, and a shift to- Conclusion
wards digital insurance solutions. The insurtech revolution is shaping the future of insurance,

making it more customer-centric, transparent, and efficient.
SMC Insurance Brokers Pvt. Ltd. aims to continue Companies like SMC Insurance Brokers Pvt. Ltd. are spear-
leading the digital transformation by: heading this transformation by adopting innovative technolo-
Enhancing AI Capabilities: Further investing in AI-driven gies that enhance service delivery. Additionally, in light of
claims processing and risk assessment models. rising medical expenses, health top-up plans have become

Expanding Blockchain Integration: Strengthening indispensable, ensuring financial security for individuals and
families.
blockchain-based policy management and fraud detec-
tion mechanisms.
By staying ahead of technological advancements and ad-
Improving Customer Engagement: Leveraging predic- dressing key market needs, insurtech is set to redefine the
tive analytics and big data to provide personalized in- insurance industry for years to come. The ongoing digital
surance solutions. evolution, coupled with customer-focused innovations, will
Adopting Sustainable Insurance Models: Introducing solidify the role of insurtech in making insurance more ac-
eco-friendly insurance policies driven by digital automation. cessible, affordable, and effective for all.

IRDAI inducts 5 new members into insurance advisory panel

India's insurance regulator has appointed five new members to its Insurance Advisory Committee (IAC), bringing in
leaders from banking, asset management, and insurance to shape future regulations.
The new members include MR Kumar, former LIC chairman and current non-executive chairman of Bank of India;
Dinesh Kumar Khara, former chairman of SBI, Vishakha Mule, CEO of Aditya Birla Capital; Nilesh Shah, MD of Kotak
Mahindra AMC; and Alice G Vaidyan, former CMD of GIC Re and independent director at Air India and Tata AIA Life.
The IAC, which advises the Insurance Regulatory and Development Authority of India (IRDAI) on policy and regula-
tory matters, will submit its report within three months. The recommendations will be forwarded to the finance
ministry, with the department of financial services (DFS) expected to draft a new Bill for stakeholder consultation.
The new draft bill talks about the FDI increase to 100% and composite license.
The appointments come at a time of major regulatory shifts, including discussions on a composite licence framework
that could allow insurers to offer multiple types of policies under a single licence.

Insurers may prefer bond forwards over FRAs

Insurance companies are likely to move towards forward trading in bonds (bond forwards) from forward-rate agree-
ments (FRAs) with the regulator allowing them to undertake transactions in the former for hedging interest-rate
risks, according to industry participants.
In a circular, the Insurance Regulatory and Development Authority of India (IRDAI) has said in view of the Reserve
Bank of India's (RBI's) directions and considering insurers' requests for introducing bond forwards, insurers are per-
mitted to undertake transactions in them.
At present, insurers are allowed to use FRAs, interest-rate swaps, and exchange-traded interest rate futures to hedge
interest-rate risks.

24 April 2025 The Insurance Times