Insurance regulator IRDAI has formed a working group to examine the use of wearable and portable devices in the insurance framework.
The 10-member group will evaluate how technological advancements, particularly wearable and portable devices, may be treated from a “point of view of risk improvement, risk assessment and use/distribution of such devices as part of policy design”, reported The Hindu.
This apart, it would examine various aspects that would affect pricing as well as suggest a policy framework keeping in view the interests of policyholders.
“It is important to understand technology trends and their implications for insurance even while seeking to harness the potential and advantages they seem to offer,” said Mr P.J.Joseph, Member (Non-Life) of the IRDAI.
“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, incorporate a healthy lifestyle,” Mr Joseph said in a statement.
The working group comprises officials from the regulator, and executives of LIC, New India Assurance, Bajaj Allianz General Insurance, Max Bupa Health Insurance and ICICI Pru Life Insurance. It is headed by IRDAI Chief General Manager Yegnapriya Bharath. The working group has to submit its report within eight weeks.