According to the recent report from Insurance Regulatory and Development Authority, the apex body has planned create a database that will make sure that the insurers get the information regarding the claim history of individual borrowers.
Reports said that the information collected by the IRDA will be a one single data that helps the insurers to know about the history of the insured. The insurance company makes use of this information to underwrite risk and also to take decisions whether to accept or reject the high claim proposal. A senior official of IRDA said that the data expected to be a Credit Information Bureau of India or Cibil-like body for the general insurance industry
Reports also said that the information in the database was based on the locality of the insured. The database is expected to facilitate base decisions on the individual’s history, rather than insurer’s experience. It is similar to the current happening with home loan and personal loan seekers in the banking industry.
Mr. K.G. Krishnamoorthy Rao, MD & CEO of Future Generali General Insurance has said that the team appointed by the IRDA has been collecting data for almost a one year from general insurance companies to address pricing issues.