The Insurance Regulatory and Development Authority of India (Irdai) has proposed to rationalize and standardize the administration of group health insurance products to protect the interests of the insured public and the insured members of group schemes. regulator The Board has proposed to issue guidelines on ‘Group Insurance Products under Health Insurance Business and other operational matters’.
“The Exposure Draft clarifies provisions to benefit all stakeholders (insurers, companies and employees) and brings in more transparency in existing practices. A call for more scientific underwriting and transparent data management practices will ensure a lasting interest in insuring the intent of employees and their families. The move will propel the industry to be able to leverage AI modeling to better mitigate risk, build stronger hospital networks and digitize employee experience.”
Insurance experts say that the draft master underlines the responsibility of policy holders which is a welcome move, which enhances transparency and redressal mechanism for end users. The need of the hour is to strike the right balance between sustainable and transparent underwriting while encouraging innovative solutions for the benefit of end users – easing claims, and easing policy management.
The regulator said that group insurance facilitates to increase the reach of insurance to both the formal and informal sectors of the society. If operated judiciously, it offers the benefit of moderate ROI coverage.
“Standardization of group health insurance products will help the insurance industry to adopt a consumer-first approach in an even more streamlined manner. This gives an opportunity to the corporates to make the process at large more transparent, and hence build more trust with the end consumer. Today, the choice of an insurance product is often determined by its cost. Determining a fair and accurate price for a group health product is important for both buyers and insurance companies. A standardized product will meet a wide variety of needs and help meet a wide range of consumers.”
IRDA has invited comments and suggestions on the Exposure Draft from the stakeholders by May 13.