Insurtech viable measure for Streamlining Insurance Operations

CIO Tech Outlook Team | Tuesday, 27 August 2024, 02:22 IST

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The Insurance Regulatory and Development Authority of India (Irdai) is urging insurance companies to develop strategies to achieve the "insurance for all" goal by 2047. This push is in response to the high premiums in health insurance, which often lead to affordability issues, especially for senior citizens who may opt out of coverage.

IRDAI is a self-governing and legal entity under the Ministry of Finance, Government of India. Its responsibility includes overseeing and permitting the insurance and re-insurance sectors in India. It was formed through the enactment of the Insurance Regulatory and Development Authority Act, 1999, by the Indian Government. The agency relocated from Delhi to Hyderabad, Telangana in 2001, where its headquarters are now located.
 
During a recent "Insurance for All" vision meeting held in Mumbai, participants focused on defining the concept of universal insurance and establishing mechanisms for measuring and monitoring progress. One key proposal was to increase the diversity of insurance providers, which could foster greater competition and drive down prices. Another suggestion was to expand distribution channels to improve accessibility, particularly in underserved areas.

The use of Insurtech was also discussed as a means to streamline operations, cut administrative costs, and improve efficiency. These cost savings could potentially be passed on to consumers through reduced premiums. Strengthening state insurance plans was identified as crucial to making insurance more affordable and achieving the broader goal of universal coverage.

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