Insurance Sector To Leverage AI: IRDAI Chairperson

With artficial intelligence (AI) booming globally, combining its algorithms with machine learning models and predictive analysis will be leveraged for underwriting as an essential process in the insurance industry, said Debasish Panda, Chairperson at Insurance Regulatory and Development Authority of India (IRDAI).

Shedding light on harnessing conversational AI in the insurance industry throughout the value chain, Panda said it will help customers assist during various stages of insurance procurement while claiming process. 

Panda extensively discussed new technological developments lined up for the Insurtech sector and highlighted India’s stunning progress in fintech. The IRDAI Chairperson shared, “While developing countries are still drawing cheques, our country has already harnessed the power of ‘Direct Benefits Transfer’.

He stressed that IRDAI is active with its reforms enhancing insurance companies to be more adaptive and responsive. We are currently at a juncture marked by personalised offerings and shifting consumer preferences to meet the rising change.

We are exploring flexibility concentrating on new products like do-it-yourself insurance, Panda said underlining the objectives which are focused on leveraging advisory technologies and digital assistants.

Panda was speaking at the Global Fintech Fest 2023 in Mumbai. He stressed that process automation will help to increase the speed of traditional processes that require manual intervention.

Emphasising on the IRDAI strategy, Panda said "We look forward to anticipating a future where insurers can efficiently manage large and diverse data sources by harnessing quantum computing. This would eventually revolutionise risk assessment and decision-making, thereby significantly improving the insurance lifecycle.

Underscoring his roadmap for the future of the insurance sector, Panda said, “It is safe to say that smart contracts, parametric triggers and decentralised insurance would be the future.”

Additionally, he stated that simple, "fast, automated and efficient" – is IRDAI's vision. "Accessibility, availability, awareness, choiceness, and healthy competition all led by technology are the way forward," Panda added.