The insurance regulator has urged the industry to collectively underwrite disruptions in the sector to make the vision of ‘Insurance for All’ a reality way before 2047.
Speaking at the 23rd global conference of actuaries organized by the Institute of Actuaries of India, Insurance Regulatory and Development Authority Chairman (IRDAI) Debasish Panda said, ‘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.’
Artificial intelligence, machine learning, big data, the internet of things, and many more such new technologies are causing disruptions and changing the traditional fabric of the sector.
He also discussed the importance of actuaries as those who drive the growth of the insurance industry by designing products while stating the need to step out of traditional and conventional roles and embrace agility. ‘We also need to the one-size-fits-all approach. I’d expect each one of you to be a more proactive leader in driving this sector to its new heights, and this cannot happen till we embrace disruptions in its entirety,’ Panda added.
Panda also spoke about the change in customer needs where today’s customers do not hesitate from sharing information in exchange for personal experiences and that companies which are operating purely on traditional sides will find it difficult to survive against those which predict customer needs using market intelligence.
‘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,’ Panda said.
Panda also added that products should be designed in such a manner that there is a balance between premiums charged and profitability for the companies.
‘We must remember that proper pricing serves to instigate teamwork that influences customer experience, market reach, and international identity of the company. This involves finding the balance between the competitive premiums to attract customers and maintaining a level of profitability that supports ongoing operations, innovation, and future growth,’ Panda said.
First Published: Feb 13 2024 | 8:10 PM IST