Irdai weighs proposal to privatise Insurance Information Bureau

Insurance regulator is examining the recommendations of a committee that has suggested privatisation of the Insurance Information Bureau or IIB. The committee set up by the Insurance Regulatory and Development Authority of India or Irdai has said that IIB should be turned into a private company owned and operated by the insurance industry with legislative backing, said two executives aware of the matter.

“All recommendations are under consideration,” said the first executive, explaining that a privatised bureau will help in maintaining the supply of quality data and further make it a profitable business entity.

“Privatisation of IIB will ensure that it explores new areas of operation, provides better service to the insurance industry and has an attractive revenue model for itself,” he said, adding that the recommendations were submitted last month.

Set up in 2009 as an advisory body, IIB collects transactional data from insurers for different lines of business, and produces periodical reports for the benefit of stakeholders in the insurance industry. It was converted into an independent society in 2012.

There is a view in the insurance industry that IIB has not been able to achieve its full potential in absence of an independent and sustainable revenue model, said another executive aware of the matter.

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