Answer: The Insurance Information Bureau (IIB) of India was promoted in the year 2009.
Introduction to the Insurance Information Bureau (IIB)
The Insurance Information Bureau (IIB) of India was established in 2009 by the Insurance Regulatory and Development Authority of India (IRDAI), the statutory body responsible for regulating and promoting the insurance and re-insurance industries in India.
IIB was established to support the Indian insurance sector with sector-level data to enable data-driven and informed decision-making. Its creation was part of IRDAI’s broader initiative to improve transparency, fairness, and efficiency in the Indian insurance industry.
Role and Functions of IIB
Since its establishment, IIB has been involved in the collection, collation, and analysis of insurance data and information. Here are some primary functions of the IIB:
- Data Collection and Management: IIB collates detailed data and creates a repository for several insurance sectors, including life, health, and motor insurance.
- Analytics and Reports: The bureau conducts analysis and research based on collected data and publishes reports that provide valuable insights into various facets of the insurance industry.
- Support for Policy Making: By providing accurate and comprehensive data, IIB aids in policy-making, product development, pricing, and risk assessment in the insurance industry.
- Fraud Detection: The IIB also has a crucial role in identifying and reducing fraudulent activities in the insurance sector by developing and implementing an industry-level fraud analytics platform.
- Innovations: It drives innovative uses of data in insurance through collaborations with other stakeholders, like developing advanced analytics models for actuarial and underwriting purposes.
Impact of IIB on the Indian Insurance Sector
IIB’s promotion has significantly contributed to the development and growth of the Indian insurance sector.
- Transparency: IIB has improved transparency in the insurance sector by providing access to sector-level data and information.
- Data-driven decision making: By providing insights and analytics, IIB has facilitated data-driven decision-making in areas like underwriting, product development, and pricing.
- Fraud reduction: Through its fraud analytics platform, IIB has helped detect and reduce fraudulent activities in the insurance sector, leading to considerable savings for insurance companies and policyholders.
- Policy development: The information provided by IIB has informed the development of insurance policies and regulations by IRDAI, leading to a more robust and efficient insurance sector.