Update: November 11, 2021 2:47 PM STI
Bombay (Maharashtra) [India], Nov. 11 (ANI / NewsView): ICICI Lombard, one of India’s leading private general insurance companies, has joined Sahamati, a non-profit industry alliance for the Account Aggregator (AA) ecosystem.
The company is the first non-life insurer to participate in the AA ecosystem and will play the role of financial reporting user (FIU). With this foray, ICICI Lombard will be able to access the complete financial information consented by the client.
The AA ecosystem is the government licensed Indian design for Open Finance. Built with the idea of fostering sound market practices, Sahamati will issue a code of conduct and market guidelines for its members. It will act as the common voice of industry and regulators.
Joining the AA ecosystem will allow ICICI Lombard to assess risks and simplify the underwriting process. It will also help to dramatically improve the turnaround time for policy issuance. As a member of the Sahamati Alliance, ICICI Lombard can lend its voice to the development of market guidelines and ecosystem standards.
Meanwhile, for clients, it simplifies the policy buying process by saving the time and effort required to provide financial information. The AA ecosystem envisions clients giving consent for a total of 23 different types of financial information, including bank deposits, credit cards, mutual funds, insurance policies, PF accounts, and others. Having consent-based access to this information should help customers benefit from tailored offers and better products.
Sanjeev Mantri, Executive Director of ICICI Lombard GIC, said: “In today’s world, protecting customer data is at the heart of our values. We have therefore partnered with account aggregators to access the financial data of consenting consumers while ensuring their protection without compromise. This ecosystem provides a level playing field for all participants by sharing data in a secure and efficient manner. By entering this ecosystem, we will be able to further streamline our underwriting process and ensure faster policy issuance. In addition, the digital delivery of services, using a trust, a regulated framework and a strong focus on user experience should help move the needle of insurance penetration in the country. ”It should be noted that AAs are non-bank financial companies that will function as a technological intermediary between companies that search for financial data (user of financial information) and companies that have that data (financial information providers). With client consent , AA will take financial information and documents from a FIP and provide it to an FIU. The future of ICICI Lombard (and any business in general) will depend on harnessing the power of data, but only with the customer consent.
Mantri added, “What is of the utmost importance now is effective consumer education on the trust framework that underpins the AA ecosystem, particularly the grievance mechanisms available. the ecosystem in terms of accuracy, security and timely delivery of data to FIUs will build confidence in the rails. Overall, customers should see the benefits in terms of targeted products, lower costs, and more secure data privacy measures – through actual implementations. “
The digital transformation offered by the AA ecosystem is promising and should very well rub off on companies that fully embrace the AA ecosystem.
We are one of the leading private sector non-life insurers in India. We offer our customers a comprehensive and well-diversified line of products, including auto, health, crop, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.
More details are available at www.icicilombard.com.
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