Public Insurance Registry: Building a Digital Public Infrastructure for Insurance

Context

IRDAI has released a consultation paper on the Public Insurance Registry (PIR), proposing a common digital layer for the insurance sector based on Digital Public Infrastructure (DPI) principles to improve information sharing and interoperability.

About Public Insurance Registry

1. PIR is proposed as a common platform through which authorised participants can discover, verify and exchange insurance-related information.
2. It aims to connect existing digital initiatives rather than replace insurers’ individual databases.
3. It follows G20 DPI principles:

1. • Interoperability: Different systems can communicate without requiring them to become identical.
   • Minimalist architecture: Provides basic digital building blocks without controlling insurers’ operations.
   • Federated architecture: Data remains with its original source instead of being centrally stored.

Key Features

1. Unified Access: Enables access to life, health, motor and property insurance details through a common interface.
2. Verified Records: Provides information on policies, claims, renewals, nominees and unclaimed benefits.
3. Better Risk Assessment: Verified data can strengthen underwriting and fraud detection.
4. Digital Integration: Complements Bima Sugam and the Digital Personal Data Protection Act, with the Sabka Bima Sabki Raksha Act supporting insurance-sector digitisation.
5. Motor Claims: Linkages with VAHAN and e-DAR can facilitate faster and more reliable motor insurance claims.

Governance

1. Institutional Structure: The Insurance Information Bureau (IIB) is proposed to be restructured as a not-for-profit entity wholly owned by IRDAI.
2. Safeguards: The framework provides for operational independence, regulatory neutrality and rotating industry representation on the board.
3. Implementation: A phased rollout is proposed for gradual adoption and course correction.

Significance

1. Consumer Empowerment: Verified information can improve comparison, switching and policy portability.
2. Efficient Claims: Better data sharing can enable faster claim settlement and reduce disputes.
3. Fraud Control: Consolidated policy and claims history can help detect fraudulent patterns.
4. Better Underwriting: Reliable data can improve risk assessment and pricing.
5. Disaster Preparedness: Aggregate exposure data can strengthen IRDAI and reinsurers’ assessment of catastrophe risks.
6. Credit and Welfare: Verified coverage can support lending decisions and targeted government support.
7. Insurance Penetration: Reduced information barriers can improve insurance access and uptake.

Challenges

1. Data Privacy: Ensure informed consent, secure access and Digital Personal Data Protection Act compliance, even under a federated model.
2. Data Completeness: If participation is initially voluntary, the registry may not contain complete sector-wide information.
3. Governance: Safeguards are needed to ensure independence and prevent regulatory capture.
4. Industry Participation: Appropriate incentives and common standards are needed to encourage data sharing.
5. Interoperability: Diverse insurer databases must follow common technical standards for seamless data exchange.

Way Forward

1. Data Governance: Ensure clear rules for consent, access, security and accountability.
2. Common Standards: Adopt uniform technical and data standards for seamless interoperability.
3. Phased Rollout: Start with key uses such as policy discovery, claims verification and motor insurance before wider expansion.
4. Effective Governance: Balance IRDAI oversight with operational independence and stakeholder representation.
5. Wider Participation: Provide suitable incentives for insurers and other stakeholders to join the registry.
6. Consumer Focus: Prioritise transparency, portability and informed choice while protecting privacy

Additional Information: Insurance Regulatory and Development Authority of India (IRDAI)

1. Establishment: Constituted under the IRDA Act, 1999 and became a statutory regulator in
2. Nature: Statutory and autonomous regulatory body under the Ministry of Finance; headquartered in Hyderabad, Telangana.
3. Composition: 10 members — Chairperson, 5 whole-time members and 4 part-time members, appointed by the Central Government.
4. Core Mandate: Regulates and promotes the orderly growth of insurance and reinsurance while protecting policyholders’ interests.
5. Key Functions: Registers and supervises insurers and intermediaries; prescribes solvency, financial and conduct norms; and oversees policyholder protection and grievance redressal.
6.  Vision 2047: Aims for “Insurance for All by 2047”, ensuring adequate insurance coverage for citizens and enterprises.
7.  Bima Trinity: Promotes Bima Sugam, Bima Vistar and Bima Vahak to improve insurance access, distribution and penetration.

FAQs

Q1. What is the Public Insurance Registry (PIR)?
Ans: PIR is a proposed common digital information layer for the insurance sector. It will enable authorised participants to discover, verify and exchange insurance information.

Q2. Which organisation proposed the PIR?
Ans: The Insurance Regulatory and Development Authority of India (IRDAI) has proposed the PIR through a consultation paper.

Q3. How can PIR benefit policyholders?
Ans: It can provide a consolidated view of policies, claims, renewals and nominees. This can improve comparison, switching and policy portability.

Q4. How can PIR help insurers?
Ans: Verified policy and claims records can improve underwriting, fraud detection and compliance, while reducing information gaps.