The Insurance Information Bureau, which acts as a repository of all the industry data, is undergoing a major revamp to enable better data analytics that would help in risk mitigation and prevention of frauds, Insurance Regulatory and Development Authority of India (Irdai) chairman Debasish Panda said on Monday.
Addressing the 22nd Global Conference of Actuaries, Panda said a new CEO has been appointed at the IIB as well as other key management personnel, including a chief technology officer and chief information officer, are in the process of being appointed. The IIB will also begin analysing and utilising data and will provide insights to insurers and Irdai for better underwriting, pricing, processing of claims as well as servicing of policyholders.
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“Today a big trend is in terms of frauds. A lot of fraudsters trick the system. Now, with the help of data, we will be able to detect and also give an early warning. Also, fraud mitigation techniques can be applied to prevent insurance companies from falling in the hands of the fraudsters,” Panda said, while inviting actuaries to suggest what more can be done to convert the IIB into a “more robust data management centre”.
Formally inaugurated in 2010, the IIB fills the need for a sector-level data repository and analytics, and provides a bundle of services related to motor insurance, spearheads the Mortality and Morbidity Investigation Centre Operations for life insurers and maintains a registry of all hospitals in the network of insurance as well as data on health portability.
Meanwhile, Panda also urged actuaries to have a more comprehensive viewpoint and be more up to date with global and domestic developments, and the insurance sector.
“You need to have the holistic view on the dynamics of the sector. But this is also not enough. As you all know, we are in an interconnected world understanding and creating the synergies across banks and financial services space is a must. What is happening in the banking sector, capital markets, payments and the global scenario also need to be factored,” he said, while asking them to be more proactive and have a constant eye on any future or emerging risks and be ready for the solutions.
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“If there is any increase or decrease in the rates by the US Fed, what is the kind of action we need today? What are the strategies we need to do immediately to take corrective actions,” he said while noting that due to the impact of the ongoing geopolitical tensions on reinsurance, a new pool had to be created.