Draft Insurance Regulatory and Development Authority of India (Insurance Information Bureau of India) Regulations, 2021

Sep 09, 2021 | by Avantis RegTech Legal Research Team

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Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on September 08, 2021 has issued the Draft Insurance Regulatory and Development Authority of India (Insurance Information Bureau of India) Regulations, 2021 To clearly specify the Objectives, Functions and Obligations of Insurance Information Bureau and to this end empower IIB to collect Data from the regulated entities on behalf of the Authority and To provide the Standards of Compliance requirements for Regulated Entities towards Submission of Data to IIB.

Objectives of IIB:

• To Collect, Analyse and Report Data/Information pertaining to Insurance and related domains for the benefit of the Stakeholders of IIB and to undertake Projects of Insurance and other related sectors regulated by the Authority in order to further its effective use to Market Players, Regulator, Government, and General Public. To Promote, Innovate, Develop, Create appropriate Software, Applications in Insurance and Related Domain.

• To Undertake, Execute, Deal, Embark, Accomplish, Effect, Achieve, Complete, fulfil any Project, Work, Mission, Venture, Assignment, Job, Task etc., of the Insurance and other related Sectors regulated by the Authority in order to further its effective use to Market Players, Researchers, Policy Holders, Regulators, Government / Semi Government/ Quasi Government Agencies, Authorities, Departments, Entities and General Public. To act as a Platform to, Enhance, Educate, Influence, Promote and Influence issues relating to the Stakeholders of Insurance and related domain and to provide a platform to review business practices besides Initiating, Exploring and Identifying Business Opportunities.

• To act as a Repository for the Data of Life, General, Standalone Health Insurers, Reinsurers and other Regulated Entities for performance of Analytics, Generation of Reports and other outputs for the benefit of the Sector.

• To act as a Central Repository/Platform for the Insurance Industry aimed at accessing and exchanging information among Insurers and other Stakeholders with the Aim of Preventing/Mitigating/Detecting Frauds in all Lines of Insurance Business. Constitute and Operate Fraud Repositories/Registry in accordance with the Fraud Monitoring Framework Guidelines issued by the Authority. 

• To generate benchmark rates for different Lines of Insurance Business including Life, Motor, Health, Marine, Fire and others on periodic basis for promoting reasonableness and sustainability of Premiums in Insurance Business.

• To act as an Exchange/Hub for Electronic Insurance Accounts and Policies and to Promote Issuance of Paperless and instant/real-time Policies.

• To act as a KYC Repository for Storage and Exchange of KYC information and for upload and download of KYC documents by Insurers To provide Sectoral Information and share Data with Government Bodies/Ministries and to collaborate with other bodies for mutual exchange of information for the benefit of the Industry.

• To act as a Platform to enhance, promote issues relating to Stakeholders of Insurance and related domains. 

• To initiate and participate in collaborative activities with entities at National or International level besides serving as a centre for promoting co-operation among various entities in Insurance and related domains.

• To act as a Consultant, Analyst, Expert in Insurance and related domains for the benefit of the Stakeholders.

Functions of IIB

a. Data Repositories: Collection, Validation and Maintenance of Policy, Claims and other Data from the regulated entities at a frequency and in the formats and manner to be specified by the Authority from time to time and creation of the following Repositories:

o Life

o Motor Health

o Fire, Marine, Engineering and Other Lines of Business 

o Insurance Intermediaries 

o Any other Repository as directed by the Authority 

b. Central Fraud Registry/Fraud Repository/Caution Repository: IIB shall constitute a Central Fraud Repository towards which it shall collect and maintain information pertaining to fraudulent/ black-listed/ suspicious persons, entities and records within all Lines of Insurance Business, in accordance with the Fraud Monitoring Framework Guidelines issued by the Authority. All Regulated Entities as directed by the Authority shall submit Data and comply with Regulatory directions in this regard.

c. Industry Platform for exchange of Policy and other Information to prevent Underwriting, Claims and other Frauds,

d. Analysis of Data

o Mortality & Morbidity Studies in Life Insurance: Generation of Benchmark Mortality & Morbidity Rates in Life Insurance, Annuity and Health/Critical Illness Portfolios on the strength of the Data created at IIB.

o Benchmark Rates for General Insurers: Motor Third Party, Fire-SFSP Burn Costs, Health Burn Costs and other benchmark rates as advised by the Authority from time to time.

o Predictive Models: Develop Statistical Models to assess the risk propensity. probable persistency and others on the basis of the Industry Data compiled at IIB.

o Periodic/Thematic/Bespoke Reports: Generate Industry Reports and Updates on matters of interest and importance at a regular frequency for the information and consumption of Insurers and other Stakeholders,

Compliances: 

Regulated Entities shall submit Data and Information as per the Frequency and Formats required by the Authority from time to time.

The regulated entities shall ensure Accuracy, Completeness and Timeliness in course of their Data Submission.

The regulated entities shall align their Systems and Databases in a manner that would enable submission of complete Data without Anomalies and Distortions.

The stakeholders / public may send their feedback / inputs / suggestion in the given format (attached) by or before September 30, 2021 on e-mail id [email protected] with a cc to e mail id [email protected]  

 


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