Industry Initiatives that Transformed the Face of Insurance in 2022

2022 was a remarkable year for the insurance industry. With a strong and nimble technology-first approach, the regulatory authority’s initiatives of IRDAI have made insurance more accessible, consumer-centric and inclusive. As the world transitioned into a post-pandemic situation, the rulebook was being rewritten across the industry to suit the needs of the new age. While on one hand, the number of Covid cases decreased this year, on the other hand, new viruses and infections kept making their way into people’s lives, making the need for an adequate protective shield imperative. Thus, regulatory developments were equally balanced to ensure greater focus on customer-centricity and higher insurance penetration.

2021 was also revolutionary in terms of guidelines like providing residential treatment coverage and facilitating paperless signing among others. Whereas this year, with the change in the regulatory mechanism, we saw a storm of progressive rules and regulations that really stand out across the industry. Developments like OPD as a category are gaining more traction to facilitate better health insurance coverage is one such excellent innovation. As we near the end of an eventful year, it is time to look back and round up the key industry initiatives that were instrumental in changing the face of insurance in 2022.

Enabling better cashless facilities through empaneled hospitals

IRDAI’s guideline on allowing insurance companies to empanel hospitals that meet the norms and standards set by the board aims to widen the scope of providing better cashless coverage across the country. This translates to better quality and better benchmarking for the entire healthcare and health insurance industry. The new regulation by the Insurance Authority will empower the end consumer to access quality cashless facilities in a seamless manner. This facility enables the policyholder to avail the prescribed treatment at any network hospital without worrying about the hospital expenses and reimbursement process. Bills are settled directly by the insurer as per the terms and conditions of the policy. Cashless is considered the preferred option in health insurance as it does not require moving from rate to rate for bill settlement and reimbursement and provides more convenience to the insured party. The move will further enhance access to good quality, comprehensive healthcare, with insurers being able to broaden their network of facilities.

Adding new usage-based motor insurance add-on

This is the most revolutionary and welcome move by the insurance regulator especially in the post pandemic world. IRDAI introduced new usage-based add-ons for motor insurance in 2022 – as you drive, pay as you drive and floater plans. Keeping in view the times of restricted mobility during COVID-19, this was a much needed addition to motor insurance and was introduced as a regulatory sandbox product during 2020. Deductible till 2022, these products allow the policyholder to save on premiums based on driving profile. And a standard amount doesn’t have to be paid throughout the year, irrespective of frequency and usage. On the other hand, the pay-as-you-drive model incentivises the driver to follow good driving hygiene, along with reward points or discounts as mentioned in the policy. It is also a win-win situation for the insurers as they can accurately assess the risk profile of the driver based on his driving profile and facilitate better underwriting practices.

access and approval of file process

With this regulation, IRDAI eased the norms for insurers to launch new products in the market much more easily. The development which initially allowed general and health insurers to launch products without prior approval was later extended to all life insurers as well. This marks a significant advance for product innovation to happen in a more seamless manner without the entanglement and delay of the approval process. This greatly reduces the turnaround time for all industry stakeholders and, above all, for the consumer; And places great importance on adopting high insurance.

Ensuring Greater Transparency with the Healthcare Professional Registry

The recent announcement of Healthcare Professional ID is a great step to facilitate better transparency and information-flow across all stakeholders of the industry – from insurers to TPAs, from doctors to policyholders. IRDAI has recommended Healthcare Professional Registry to build a network of healthcare professionals and physicians to improve OPD coverage in health insurance. The guideline is woven into customer-centricity and focused on continuous product innovation and acceleration. On the other hand, it will make it more convenient for medical professionals to get professional indemnity cover for themselves and to protect themselves in case of legal troubles.

Mandating mental health coverage in health policies

Mental health has long been a secret area India And it was brought to the forefront only after the pandemic. Although guidelines for mental health coverage were in place before COVID-19 hit, it was mandated after the outbreak. A recent IRDAI guideline directed all health insurers to provide coverage for mental health in policies by October 31, 2022. Mandatory coverage means that new policies must treat mental health issues in the same way as physical illnesses. as existing. This essentially means that the policyholder will get coverage for hospitalization related to mental health treatment. However, for effective coverage, one should ideally opt for OPD coverage in their health plan to ensure coverage for doctor’s consultations.

Standardization of Group Insurance Products

Another step by the regulator to ensure consumer-centricity in insurance, the standardization of group health insurance products was much welcomed. The initiative aims to better streamline the products and drive their adoption at the industry level. It also offers the possibility of implementing better transparency on a large scale through the corporate ecosystem. Prior to this, an organization’s buying decision often depended on its cost. Standardization of the product will help in costing the product efficiently and also meet the needs of the consumer.

As we wrap up the year and look back on these initiatives, it is time to take a moment to recognize these innovative and progressive steps. It is also the beginning of a new era for insurance and optimistically, more such initiatives will be taken in the times to come.

This article has been written by Sarbveer Singh, CEO, Policybazaar.com.

Disclaimer:The views expressed in this article are the author’s own and do not represent the stand of this publication.

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