Page 10 - The Insurance Times December 2024

Freo Enters Insurance Sec- stability, governance, and compliance tic reinsurance capacity and attracting
history. This allows for tailored over- large-scale investors to the sector.
tor with IRDAI Licence sight and early intervention when nec- These initiatives aim to create a robust

Freo, a digital finance app, has ven- essary. and inclusive insurance market.
tured into the insurance sector after
IRDAI aims to align its supervisory prac-
securing a Corporate Agent Licence
from IRDAI. Known for its flexible tices with global standards, ensuring IRDAI Warns Against Mis-
credit, investment, and UPI services, the sector is better prepared to handle Selling in Bancassurance
Freo aims to offer insurance products emerging challenges. By adopting
in collaboration with top insurers RBSF, the regulator seeks to enhance IRDAI has raised concerns about the
across 1,200 cities. risk management and promote long- mis-selling of insurance products under
term stability in the insurance ecosys- the bancassurance model. Addressing
Initially focusing on essential health
tem. the SBI Conclave, Chairman Debasish
coverage, Freo plans to expand into
Panda emphasized the need for banks
emerging risks such as cyber fraud and to prioritize customer trust and ensure
job loss. Co-founder and CEO Kunal IRDAI Advocates for 100% that insurance sales remain incidental
Varma emphasized the company's goal FDI to Achieve 'Insurance
to make insurance simple and acces- to banking services. Instances of banks
sible through a seamless digital plat- for All' pressuring customers, including senior
form. By integrating insurance into its IRDAI Chairman Debasish Panda has citizens, to purchase unsuitable poli-
offerings, Freo aims to address diverse made a strong case for raising the FDI cies have prompted regulatory scru-
financial needs, strengthening its posi- tiny.
limit in insurance to 100%, emphasiz-
tion as a one-stop financial solution ing the sector's capital-intensive na- IRDAI has placed the onus on insurers
provider. to ensure that policies meet customer
ture and its critical role in achieving
the goal of "insurance for all" by 2047. needs. The regulator has also simplified
IRDAI Promotes Risk- Panda noted that full foreign owner- compliance requirements by reducing
Based Supervision Frame- ship would attract global players and the number of applicable regulations,
work increase investments, enabling insurers fostering a more business-friendly en-
to meet the growing needs of the In- vironment while safeguarding con-
At the 8th Bima Manthan summit, dian population. sumer interests.
IRDAI announced plans to implement
a risk-based supervision framework Additionally, Panda reiterated the im-
(RBSF) for insurance companies. Unlike portance of composite licences, which IRDAI Addresses Data
a one-size-fits-all approach, RBSF fo- would allow insurers to operate in both Breaches in Insurance
cuses on insurers posing the greatest life and non-life segments. The regula- Following data breaches involving in-
risks, assessing factors such as financial tor is also focusing on building domes- surers, including Star Health Insurance,

IRDAI has directed the affected com-
IRDAI Proposes Changes to Regulatory Sandbox panies to conduct comprehensive IT
audits. These breaches exposed sensi-
Framework tive policyholder information, including
To encourage innovation, IRDAI has proposed amendments to its regula- medical records and personal details.
tory sandbox framework, shifting from a rule-based to a principle-based ap-
proach. Regulatory sandboxes allow insurers to test new products and ser- IRDAI has mandated independent au-
vices under controlled environments, enabling them to adopt innovative prac- dits to assess vulnerabilities and ensure
tices without regulatory hindrance. robust cybersecurity measures. The
regulator is closely monitoring the situ-
The proposed changes aim to make the sandbox process more flexible, fa-
ation and obtaining regular updates to
cilitating the introduction of creative ideas across the insurance value chain. protect policyholders' interests. These
IRDAI has invited public feedback on these amendments by November 25, incidents underscore the importance of
signaling its commitment to fostering innovation and modernization in India's
data security in the evolving insurance
insurance sector.
landscape.
10 December 2024 The Insurance Times