The Insurance Regulatory Authority of India (IRDAI) is planning to bring in fitness wearables and other Internet of Things (IoT) devices under insurance coverage. IRDAI constituted a working committee to examine these innovations in the insurance sector.
The insurance regulator notified that the ten member working group would be chaired by Chief General Manager of IRDAI, Yegnapriya Bharath. The group would consist of four members of IRDAI along with experts and representatives from the industry.
The committee will examine the impact of technical advancements in insurance sector from the point of risk improvement, risk assessment and use of these devices as part of policy design. They will also discuss how bringing such devices under insurance cover can help in improvement of product design, which can measure personal fitness and healthy lifestyle. It will study various aspects that may impact policy pricing and suggest a policy framework in interest of policyholders. The group is expected to submit its reports along with recommendations in the month of February, 2018.
The industry insiders and experts believe that adoption of fitness wearables and other IoT devices in the country is on the rise, and the market is growing rapidly. The initiatives of the regulator will encourage innovations and more offerings in health 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.” a regulator noted.
*Source: The New Indian Express
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