Imagine having to search through years of emails, policy papers and messages from different insurance agents just to determine which policies you own, when they are due for renewal or whether you are entitled to any unclaimed benefits.
This lack of a unified system is among the issues that the Insurance Regulatory and Development Authority of India (IRDAI) hopes to address through its proposed Public Insurance Registry (PIR).
The regulator has proposed the PIR as a digital public infrastructure for the insurance industry. The objective is to build a more integrated ecosystem in which reliable insurance-related information can be accessed more easily, while making processes simpler for consumers and other stakeholders.
But what could the proposal mean in practical terms for policyholders?
Insurance Samadhan Co-founder and COO Shilpa Arora said convenience could be one of the biggest advantages, as insurance information is currently often spread across multiple insurers, agents and physical or digital documents.
Here are some ways the proposed registry could potentially change how consumers manage their insurance.
ALL YOUR INSURANCE POLICIES IN ONE PLACE
One of the most obvious advantages could be giving consumers a consolidated view of the insurance policies they already hold.
Arora said policyholders often have their insurance details distributed across different insurers, intermediaries and documents.
She described convenience as the primary potential advantage of a Public Insurance Registry.
A single interoperable platform could allow consumers to view important information about their policies, including coverage details, renewal dates, claims and unclaimed benefits.
This could be particularly helpful for people who have purchased several insurance products over the years and do not currently have a complete picture of their overall insurance portfolio.
Arora also said the registry could make switching or porting policies more convenient by keeping important policy information accessible. This could help consumers preserve continuity-related benefits when moving between policies or insurers.
COULD IT REDUCE MIS-SELLING?
The potential advantages of the registry could extend beyond convenience.
Mis-selling remains a concern in insurance, particularly when customers depend heavily on agents or intermediaries to explain the product they are purchasing.
Giving policyholders easier access to accurate and reliable policy information could help address this imbalance.
Arora said consumers with simpler access to policy details could make more informed decisions instead of depending entirely on explanations provided during the sales process.
She added that this could reduce instances of mis-selling while helping customers understand their coverage as well as exclusions more clearly.
For consumers, this could make it easier to verify what a policy actually covers before purchasing it or determine whether an existing policy provides sufficient protection.
CLAIMS COULD BECOME LESS CUMBERSOME
The benefits of a connected insurance system could become particularly significant when consumers actually need to use their policies.
Filing claims or raising grievances can involve repeated documentation and communication with insurers and intermediaries. If relevant information is available through an interconnected system, some of this duplication could potentially be eliminated.
Arora said policyholders may not need to repeatedly provide the same documents or contact multiple entities to obtain information during claims or grievance procedures.
A more integrated system could potentially make verification, claims processing and grievance tracking quicker and easier.
However, the actual impact would depend on the specific use cases eventually introduced and the extent to which different participants are integrated with the registry.
INSURERS COULD GET A MORE COMPLETE VIEW
The proposed registry is also expected to offer potential benefits to insurers.
Subject to customer consent and appropriate privacy safeguards, insurers could potentially access a more comprehensive picture of a policyholder’s existing policies and claims history.
According to Arora, this could support better-informed underwriting decisions and reduce the possibility of consumers being offered unsuitable or duplicate insurance products.
Improved information sharing could also make the wider insurance ecosystem more efficient by reducing information gaps between customers, insurers and intermediaries.
COULD PIR HELP MAKE INSURANCE MORE AFFORDABLE?
Sarbvir Singh, Joint Group CEO of PB Fintech, described the proposed registry as a potentially significant structural development for the insurance sector.
Singh said Policybazaar views IRDAI’s initiative as an important and forward-looking move, noting that insurance information has traditionally been fragmented across insurers, intermediaries and policyholders rather than being available through a common and accessible framework.
He highlighted three broad goals mentioned in IRDAI’s consultation paper: promoting growth and inclusion, strengthening trust and transparency, and improving affordability and financial sustainability.
According to Singh, a centralised registry could contribute to all three objectives.
For consumers, one possible advantage could be easier access to insurance products and a smoother onboarding process.
He said reliable and unified data could encourage more inclusive product development and simplify onboarding, particularly for underserved sections of the population.
Greater efficiency throughout the insurance ecosystem could also help reduce costs, potentially supporting affordability and the long-term sustainability of the market, Singh added.
WHEN WILL THE PIR BE LAUNCHED?
The Public Insurance Registry remains at the proposal and consultation stage.
IRDAI has outlined possible applications for the registry in its consultation paper, but these are still conceptual. Detailed technical and functional specifications are expected to be developed as the initiative moves forward.
The regulator is inviting feedback from industry participants and the public on several aspects of the proposed framework, including its objectives, potential use cases, technical standards, privacy protections, governance structure and implementation strategy.
For consumers, therefore, the PIR is not yet an operational insurance dashboard.
If implemented along the lines currently proposed, however, the Public Insurance Registry could significantly change how people locate, understand and manage their insurance. It could help consumers keep track of multiple policies and renewal dates, while also making claims, grievances and policy switching easier to navigate.
The proposal's biggest potential impact could ultimately be in reducing the fragmentation of insurance information and making more of that information easily accessible to policyholders.
