The insurance regulator has set up a working committee on how the insurance sector can harness the potential and advantages of wearable and portable technology devices.
The committee will examine how technological advancements, particularly wearable and portable devices, may be treated from the point of view of risk improvement, risk assessment and use/distribution of such devices as part of policy design. It will also try to understand the practices of other jurisdictions in this area and suggest the policy framework that needs to be put in place keeping in view the interests of policyholders.
The panel will also examine various aspects that wo-uld impact pricing and make suggestions regarding any other matter that is relevant or connected to this area.
“Use of wearable and/or portable devices in insurance is a subject that frequently comes up in the context of financial technology (FinTech). IRDAI’s health insurance regulations recognise the role of ‘Wellness’ in risk assessment and product design. In the context of both health and life insurance, wearable devices could be used to measure personal fitness and incorporate a healthy lifestyle,’ IRDAI said.