IRDAI chief asks insurance players to underwrite disruptions to improve market penetration

IRDAI chief emphasised that the approach of 'one-size-fits-all' has become a thing of past due to the radical technology-driven changes taking place in the industry.

Mumbai: Insurance players need to underwrite disruptions to make the vision of "insurance for all" a reality by 2047, regulator IRDAI's chief Debasish Panda said on Tuesday.

The chairman of the Insurance Regulatory and Development Authority of India (IRDAI) also emphasised that the approach of "one-size-fits-all" has become a thing of past due to the radical technology-driven changes taking place in the industry.

"It's time we retrieve our base, firm up our resolve and collectively underwrite disruptions in the insurance sector and make the vision of 'insurance for all' a reality by 2047. In this process, the role of the actuary becomes paramount. The disruptions in the insurance sector cannot happen without the support of actuaries," Panda said at the 23rd global conference of actuaries organized by the Institute of Actuaries of India here.

"There is a need to come out of the traditional and conventional roles and embrace dynamism and agility and also there is a need to see the sector from a different lens," he said, acknowledging the role of actuaries in designing the insurance products and drive the growth of the sector.

With over 850 million internet users and 750 million smartphone users in the country, every click, every keyboard button press, swipe or tap is generating data. "These digital footprints are available and most importantly, today's customers do not shy away from sharing information in exchange of personalised experiences," he said.

"Thus, any insurance company operating purely on the traditional sides will find it difficult to survive against the ones having predicted customer needs and offer the right product through the right channel to the right customer," he said.

"Today," he said, "blockchain-enabled smart contracts have enabled the settlement of insurance debt within seconds and even fraud detection has become more effective with the help of data analytics."

Artificial intelligence, machine learning, big data, internet of things (IoT) and many more such new technologies are causing disruptions and changing the traditional fabric of the sector, the chairman said.