Irda sets up committee to study innovations in insurance

MUMBAI: The Insurance Regulatory and Development Authority today constituted working group to understand innovations in insurance involving technological advancements, particularly wearable and portable devices and how it can be treated from the point of view of risk improvement as part of policy design.

The 10 member chaired by Yegnapriya Bharath, CGM, IRDAI will understand the practices of other jurisdictions in this area and suggest policy framework that needs to be put in place keeping in view the interests of policyholders and examine various aspects that would impact the pricing.

“While encouraging innovation, the regulator must run alongside it, keeping in view the interests of policyholders,” Irda said.

The regulator said that use of wearable or portable devices in insurance is a subject that frequently comes up in the context of financial technology. The regulator’s Health Insurance Regulations recognise the role of ‘Wellness’ in risk assessment and product design.

“In the context of both Health Insurance and Life Insurance, wearable devices could be used to measure personal fitness, incorporate a healthy lifestyle etc, said Irda.

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