ICICI Lombard has joined Sahamati, a not-for-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 be playing a role of a Financial Information User (FIU), it said in a statement.
With this foray, ICICI Lombard will be able to access the comprehensive, customer-consented financial information, the company added.
"The AA ecosystem is the Government authorised Indian design for Open Finance. Built with the idea to foster healthy market practices, Sahamati will publish a code of conduct and market guidelines for its members. It will act as a common voice of the industry and regulators," it said.
"Joining the AA ecosystem will enable ICICI Lombard to assess risk and make the underwriting process simpler. It will also help in improving the turnaround time taken for policy issuance significantly. As a member of the Sahamati Alliance, ICICI Lombard can lend its voice for shaping market guidelines and ecosystem norms," the company said.
Meanwhile, for customers, it simplifies the process of policy-buying by saving the time and effort required in providing financial information. The AA Ecosystem envisions customers giving consent for a total of 23 different types of financial information, including bank deposits, credit cards, mutual funds, insurance policies, PF accounts and the likes. Having consent-driven access to this information should help customers experience tailored offers and better products, the statement read.
Sanjeev Mantri, Executive Director at ICICI Lombard GIC said, “In today’s world, protection of customer’s data is at the core of our values. We have thus tied-up with Account Aggregators to get access to the financial data of consenting consumers while ensuring its uncompromising protection. This ecosystem provides a level-playing field for all participants by sharing data securely and efficiently. By entering this ecosystem, we will be able to streamline our underwriting process further and ensure quicker policy issuance. Furthermore, digital delivery of services, using a trust, regulated framework and a strong focus on User Experience should help move the needle of insurance penetration in the country.”