Insurance sector regulator IRDAI has formed two committees to explore and suggest ways to promote e-commerce in the sector in order to increase insurance penetration and bring financial inclusion.
The two committees comprising five members each will finalise a report with recommendations in four weeks, IRDAI said on Friday. "E-commerce has changed the way business is conducted across the world. The ease and convenience to buying a product online has revolutionised the manner in which products are sold across the world," the regulator said.
India is no exception and a plethora of products are being sold and delivered using the electronic platform to millions of customers. "It is probably the right time to extend this opportunity into the insurance space," it said.
To increase insurance penetration and to bring financial inclusion in a cost-effective manner, the Authority is inclined to facilitate the promotion of e-commerce in insurance space, it said.
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It would lower the cost of transacting insurance business and bring higher efficiencies and greater reach suitably leveraging the government initiative of Digital India aimed at creating a digitally empowered society and knowledge economy, the regulator said.
"Therefore it has decided that two groups, one for life insurance and the other for general insurance (which will also include health insurance) will be formed consisting of subject matter experts from regulatory body, insurers, intermediaries, insurance repositories," it added.
As per Insurance Regulatory and Development Authority of India (IRDAI) the two committees will explore opportunities and suggest way forward to promote e-commerce in the insurance sector.