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(i) MIS reports
(ii) Accounts
(iii) Reinsurance contracts and
(iv) Outsourcing arrangements etc.

IT systems play a very important role in off site monitoring as several of the
processes can be automated and attention the attention of the regulator drawn at
slightest hint of unexpected/adverse information flow.

(b) On-site inspections - These are done to verify the authenticity of the reports
submitted, check their internal controls, and also examine the market conduct
aspects of the insurers. This is supplementary to off-site monitoring, and not a
substitute.

Q6. Mention the areas which need regulatory intervention to ensure protection
of customers ' interests.

Ans. Some of the areas which need regulatory intervention for customers' protection,
are as follows :

(a) Access - Regulators may impose requirements like guaranteed issues or variants
thereof, for some/all health insurance products in the market.

(b) Renewability and cancellation - Regulators may lay down certain provisions so
that the insurers cannot arbitrarily decline renewals/cancel policies, especially where
they do so with the intention of 'cream skimming'. The measures possible include
requirements for guaranteed renewability, or for certain disclosures on renewability
upfront to enable them to remain informed.

Portability across insurers, including creditable coverage from earlier insurers, may

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