IRDA allows E Insurance Repositories

IRDA has now made it possible for insurers to offer dematerialized policies similar to other dematerialized financial products. Insurer stands to gain by savings in processing while customer also benefits since it will be easier for the customers to buy and manage their multiple life insurance policies in a single demat account. Regulator had proposed that every insurance company would tie up with designated repositories - SDL Database Management, Central Insurance Repository and SHCIL Projects, Karvy and CAMS Repository Services. Right now, this facility is approved only for life insurance products.

However IRDA is expected to give ahead to general insurance policies as well.
E repositories will allow insurers to set up straight-through processing experience to customers where policies can be bought online and issued into e accounts without any physical policy. To manage the additional risks associated with this critical outsourcing, insurer would need to beef up their reconciliation, risk management and audit coverage so that e-insurance policies do not pose additional compliance, information & record management related risks.

Repositories will need to register with IRDA and are required to have sufficient processes to comply with the following requirements.
1. Systems & processes to protect against unauthorised access, alteration, destruction, disclosure or dissemination of records and data;

2. Secured network protected against unauthorized entry or access;

3. standard transmission and encryption formats and non‐ repudiation safe guards for electronic communications of data amongst the insurance repository, insurers and policyholders

4. Physical & computer security access control

5. Procedures & facilities to protect records against loss or destruction

6. Back up facility for people, data, paper, systems & processes

7. Procedures for maintaining integrity & confidentiality of the information

8. Compliance requirements to protect policyholder interests.

Insurer and Repository will need to review their operations periodically. Riskpro provides consulting & audit services to review operations of the insurance repositories as well as consulting for setting up the best practices to keep information available, maintain integrity and protect confidentiality.

(Contributed by Shriram Gokte - shripad97@yahoo.co.in)

Other Services of Interest

  • Reduce your GDPR implementation Costs - Hire GDPR Experts in India

    Reduce cost for GDPR Compliance - Remote Consulting from India GDPR readiness assessment and implementation can be costly. And time is short. Instead of paying premium fees to local GDPR consultants...
  • Riskpro India on top of Emerging Risks that bother you

    Riskpro India is well positioned to offer advisory services for emerging risks such as Data Protection (GDPR), information security, assurance services such as Third party risk management, internal...
  • Risk Appetite and Risk Strategy

    COSO Enterprise Risk Management 2017 is here. And one of the most important changes in ERM is that ERM ties back to strategy and business objectives. ERM is no more an isolated practice followed...
  • Introduction to GDPR - Data Protection Training Mumbai

    You are invited to an enriching introduction to the most important regulation in data privacy – The EU General Data Protection Regulation (GDPR). The regulation is creating ripples across the Indian...
  • Assurance Services

    In Riskpro we believe that Internal audit function has to align its activities with business activities of any organisation to achieve its objectives. IA can be of significant value if it maintains...
  • Risk Based Internal Audit Services

    Why Internal Audit Matters In order to run your business, you develop processes to manage the factors that drive performance and help control internal and external risks that could prevent you from...
  • Risk Management Score - Benchmarking Risk Management effectiveness

    Risk Mitigation results are often not apparent. This makes it more difficult to justify whether a company is doing it right. To overcome this issue, Riskpro has introduced a proprietary Risk...
  • Information Security Policies - Full Set

    Riskpro has put together a complete documentation toolkit for ISMS /ISO 27001 framework. To purchase this work template based toolkit, please send an email to info@riskpro.in.
  • SSAE 18 - SOC Audit and Attestation Services

    Riskpro has been providing SSAE 16/ now SSAE 18 and other information security services for over two years. Here are some of the major benefits our clients are experiencing. Benefits of SOC Audit...
  • Go to top