Now health enthusiasts have reasons to be happy as their wearable devices will soon become part of the insurance policy framework. Insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) has constituted a 10-member working group on innovations in use of wearable and/or portable devices in insurance.
Recognising the role of wellness in risk assessment and product design, the regulator said wearable devices could be used to measure personal fitness or incorporation of a healthy lifestyle both in the context of health and life insurance.
The working group headed by IRDAI Chief General Manager Yegnapriya Bharath will examine the role of innovation in insurance involving wearable/portable devices. “Use of wearable and/or portable devices in insurance is a subject that frequently comes up in the context of financial technology (fintech),” IRDAI said in a notification. The working group has to submit its report alongside recommendations within two months.
Under the terms of reference of the working group, it will examine how technical advancements, particularly wearable and portable devices may be treated from the point of view of risk improvement, risk assessment and use of such devices as part of policy design. Use of wearable gadgets, especially among health enthusiasts, alongside health apps on mobile phones is on the rise as people find these devices handy to track their physical activities and health status.
“It is important to understand technology trends and their various implications for insurance even while seeking to harness the potential and advantages they seem to offer. While encouraging innovation, the regulator must run alongside it, keeping in view the interests of the policyholders,” the regulator said.
The working group has also terms of reference such as understanding practices of other jurisdictions in this area, suggesting a policy framework in view of interest of policyholders and studying various aspects impacting policy pricing.