The ongoing steady development in the FinTech space is a product of a world progressing towards cashless transactions. The regulators, ecosystem participants are gearing towards making all Payments and settlements to happen electronically. Nevertheless, consumers in India have been slow to adapt themselves to digitization financial records, documents and policies. However, this disposition is bound to change in the insurance space in India with new regulations that have been unveiled by the IRDAI.
Insurance Regulatory and Development Authority of India (IRDAI), in its issuance of e-Insurance Policies Regulations, 2016, has designated that most categories of insurance policies are to be issued in digitized, electronic form, from October 1, 2016. Insurers would therefore require an e-Insurance Account (eIA) to purchase or renew most policies, including motor insurance and overseas travel insurance policies.
Benefits of e-insurance
It is apparent that the benefits of e-insurance accounts are not limited to safety, convenience and single KYC alone; potentially reduced premiums over a period of time renders digital insurance highly favorable. Prospects of a single-view platform to allow view and management of all policies held should certainly improve policyholder experience over time.
The benefits of digitizing Insurance policies is aplenty; digitized policies will be convenient and safe, eliminating paper and associated risks of storage and loss. With no risk of physical loss or damage, e-insurance policies will effectively eliminate need for duplicating documents, which in itself is a tedious process.
e-insurance policies are also thoughtful in provisioning privilege to access and manage the insurance account and all policies taken by an authorized representative of the policyholder, in the event of the latter’s unexpected loss of life.
With physical insurance policies, there have been several cases where the surviving beneficiary was at a loss to locate the physical document, or was not even aware that such a policy existed, that it has led to unclaimed amount with insurers in excess of Rs. 5000 Crore.
Also e-insurance policyholders would be in a position to reap the complete benefits of financial inclusion through the JAM Trinity (Jan Dhan, Aadhar and Mobile) and similar programs.
Adapting to the inevitable
As a relatively new concept, the prospect of owning e-Insurance Accounts had seen only a lukewarm reception so far despite the many benefits, owing to limited awareness among users. However, with the IRDAI policy coming into effect by October, consumers have been urged to create e-insurance accounts; the process for the same could be initiated with the aid of the insurer or through CAMSRep, without causing any noticeable inconvenience to the policyholder.
Dematerialization is anything but new to financial documentation. Investors have been operating extensively in securities, stocks and bonds from their demat accounts, leveraging the deft paperless convenience that it offers. The same is to be replicated for insurance with policies to be issued in demat forms. CAMS, as a trusted technology enabled services partner to the BFSI, has always been a step ahead in adapting to new technology breakthroughs and this was no different in the space of digitizing insurance.
Insurance Digitization made easy with CAMSRep
CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary of CAMS, licensed by (IRDAI) and among the first of its kind to be launched, introduced electronic insurance policies and has acted as a single point of service for all e-insurance policies held, making it convenient for policy holders to get service on demand.
CAMSRep Centers in over 270 locations across India act as a point of presence for both customers and sales on behalf of insurance companies, facilitating processes of Data Digitization, Electronic Insurance Account Creation, Electronic Policy Credit, Online premium payment and acceptance of Policy Owner Service Requests.
It is noteworthy that the Insurance Repository business of CAMSRep was recognized by Celent and Asia Insurance Review at the 5th Asia Insurance Technology Awards 2015 as the ‘Best Newcomer in the Insurance Technology’ space.
Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com