IRDAI has developed a methodology for identification and supervision of Domestic Systemically Important insurers(D-Slls) D-Slls refer to insurers of such size, market importance and domestic and global interconnectedness whose distress or failure would cause a significant dislocation in the domestic financial system. Therefore, the continued functioning of D-Slls is critical for the uninterrupted availability of insurance services to the national economy.
For the year 2020-21, IRDAI has recognized LIC, GIC RE and Newindia under D-Slls. Due to current market conditions it is very important for regulators to take measures in advance to safeguard the solvency of the important insurers who have a considerable share inthe market.
IRDAI has recently allowed insurers to offer wellness and preventive features as optional or add-on cover in health insurance policies.
Health insurance companies will now be able to offer reward points to policyholders who maintain good health and regularly take part in various wellness and fitness programmes. The rewards could be redeemable vouchers for health supplements, membership in yoga centres, gymnasiums, sports clubs or fitness centres. The insurer can also provide discounts on premiums or increase the sum insured at the time of renewals based on the wellness regime followed by policyholders in the preceding policy period.
IRDAI guidelines specify that no wellness and preventive feature can be offered without it being filed or incorporated as part of the product in terms of the Product Filing Guidelines.
This is a welcome move by IRDAI as policyholders should take health insurance as precautionary measure. They should try to maintain good health which will not only help their family but society too. This may also bring a positive change in the mindset of customers.
IRDAI has also introduced Video Based Identification Process (VBIP) which will help to simplify the process of Know Your Customer (KYC), and leverage the various electronic platforms to make it customer friendly.
