Insurance companies should make use of data analytics to design products and pricing, IRDAI Chairman T S Vijayan said today.
"Insurance is happening on probability. If there is a central organisation, which collects data from all the insurance companies, a very good tariff can be generated, premium rates can be generated. This is what IIB (Insurance Information Bureau of India) is doing today," Vijayan said.
The Insurance Regulatory and Development Authority of India Chairman was addressing the Annual Conclave of Insurance Information and Ratemaking Forum of Asia, 2016.
R Raghavan, CEO of IIB, said as the total insured population in India is a very small base, the role of technology to push the product through multiple channels including Internet, Mobile will help increase the coverage.
This increased coverage will reduce the cost of insurance and make it more affordable to the common man. Since Insurance is a 'push product' and India is not a risk sensitive country, the Insurance companies and Government -- Center and State -- need to collaborate and incentivise the need for taking an insurance cover, Raghavan added.
