NEW DELHI: The Insurance Regulatory Authority of India (Irdai) has set up a working committee to look into the viability of bringing in wearables and other Internet of Things (IoT) devices to improve insurance risk assessments and product development, especially in the health segment.
In a notification on Thursday, the insurance regulator said that the 10-member working group headed by Chief General Manager Yegnapriya Bharath will examine the role of innovation in insurance involving wearable/portable devices. The group is comprised four officials from Irdai (not including Bharath) and one representative each from Life Insurance Corporation, New India Assurance Company, Bajaj Allianz General Insurance, Max Bupa Health Insurance and ICICI Pru Life Insurance.
“Use of wearable and/or portable devices in insurance is a subject that frequently comes up in the context of financial technology (fintech). It is important to understand technology trends and their various implications for insurance even while seeking to harness the potential and advantages they seem to offer. While encouraging innovation, the regulator must run alongside it, keeping in view the interests of the policyholders,” the regulator noted.
The working group will examine how technical advancements may be treated from the point of view of risk improvement, risk assessment and use of such devices as part of policy design. The group will also look into the practices of other jurisdictions in the space, suggest a policy framework in view of interest of policyholders and study various aspects impacting policy pricing. The group is expected to submit its report along with recommendations in about two months.