Health Insurance clam settlement: The chairman of the insurance regulator said at the Global Fintech Fest that meeting the needs of the largest population cannot be done with a handful of players or a few products.
New Delhi: Currently, a health insurance policy holder has to deposit some amount when admitted to the hospital. Whereas, insurance regulator IRDAI is preparing to soon provide completely cashless i.e. 100 percent cashless claim settlement facility to the policy holders. Along with this, considering the population, the regulator’s emphasis is on expansion, capital investment and bringing in companies in the insurance sector.
Insurance Regulatory and Development Authority (IRDAI) Chairman Debashish Panda said that the Indian insurance sector, with more than 70 companies, is not even large enough to serve its 1.4 billion population. The industry needs more insurance companies to meet the increasing demand. Expressing his vision for a future without the need to file insurance claims, he stressed the importance of enhancing products and services and said that technology will play a central role in shaping this emerging era of insurance.
The chairman of the insurance regulator said at the Global Fintech Fest that meeting the needs of the largest population cannot be done with a handful of players or a few products. He described the number of service providers currently working as very low.
He said there is scope for expanding insurance across traditional risk areas – life, health, property, motor or crop. He said, also as the world is becoming increasingly technology-based and digital, the increase in cyber risks and potential losses creates a significant market opportunity in the insurance sector.
He said that the next 10 years are extremely important for the insurance sector as given the increase in awareness levels, the industry will see a change in the nature of the insurance product as well as the way companies deliver it. He said that there will be a need for more customized products and all this will require more players i.e. insurance companies, more opportunities, more expertise and most importantly more capital in this sector.
On the product innovation front, he pointed out the need to create flexible retirement schemes. He added that there is also a growing trend towards DIY (do it yourself) product or self-service approach to determine the base personalized option, which has led to the emergence of various consultant technologies and devices like digital assistants.
He asked the industry to leverage AI and machine learning to increase underwriting accuracy, which can be used to tailor products based on customer risk profiles. He talked about achieving 100% cashless health insurance.
