The Insurance Regultory and Development Authority of India (IRDAI) on Thursday constituted a working group to examine innovations in the insurance sector that involve wearable or portable devices.
The group, chaired by Yegnapriya Bharath, CGM, IRDAI, has 10 members from the authroity and industry, including Tapan Singhel, CEO, Bajaj Allianz General Insurance Company Ltd, and Ashish Mehrotra, CEO, Max Bupa Health Insurance Co Ltd.
“Use of wearable/portable devices in insurance is a subject that frequently comes up in the context of financial technology
IRDAI’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 for a healthy lifestyle.
When it comes to motor insurance, the IRDAI had released a discussion paper on the subject of ‘Telematics’. “While encouraging innovation, the regulator must run alongside it, keeping in view the interests of policyholders. It is from this perspective that IRDAI has decided to set up the instant Working Group,” said Joseph.
Commenting on the working group, Sandeep Patel, MD and CEO, Cigna TTK Health Insurance, said the adoption of wearable fitness devices in India is on the rise and the market is growing rapidly. The initiative of the regulator will encourage innovations and more offerings in health insurance, he added.