IRDAI Proposes Insurance Information Layer
Public Insurance Registry Could Reshape India’s Insurance Ecosystem: The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a Public Insurance Registry (PIR) to create a common digital information layer for India’s insurance ecosystem. The initiative is being compared with UPI because it seeks to make interoperability and verified information central to the sector.
The proposed registry could connect policyholders, insurers, reinsurers, regulators, banks and government agencies while allowing information to remain with the systems where it was originally generated.
Learning From the DPI Model
India’s Digital Public Infrastructure (DPI) approach relies on interoperable systems rather than forcing every participant to use an identical platform. UPI demonstrated how shared digital infrastructure can allow different service providers to interact seamlessly.
The PIR proposal follows similar principles, particularly interoperability, minimalist building blocks and federated architecture. The objective is to establish common infrastructure while allowing insurers to retain their individual products and operating systems.
Static GK fact: UPI, developed by the National Payments Corporation of India (NPCI), enables instant bank-to-bank payments through an interoperable digital framework.
Problems in the Insurance Ecosystem
Insurance customers currently face information gaps across multiple policies and providers. KYC processes may be repeated, while complete claims and policy histories are not always easily accessible when customers change insurers.
The absence of a consolidated information layer can also increase information asymmetry between customers and insurers. PIR aims to support a system in which customers can access verified information and make more informed insurance decisions.
How the PIR Could Work
The registry is proposed as a common information layer through which participants can discover, verify and exchange insurance-related information. Instead of creating a single massive database, the architecture emphasises source-system primacy, allowing information to remain with its originating institution.
This federated approach is particularly important for data privacy. Queries and information exchanges would need to operate within the safeguards established under India’s digital personal-data framework.
Institutional Governance
The consultation proposal also addresses the governance structure of the registry. It envisages restructuring the Insurance Information Bureau (IIB) into a not-for-profit entity wholly owned by IRDAI.
The proposed structure emphasises independent execution, institutional neutrality and rotating industry representation. A phased implementation has also been suggested so that the system can develop through practical use cases rather than an immediate sector-wide mandate.
Benefits for Stakeholders
For policyholders, PIR could provide a consolidated view of life, health, motor and property insurance policies, including nominees, renewals, claims and unclaimed benefits.
For insurers, verified policy and claims information could strengthen underwriting and fraud detection. Reinsurers and regulators could gain access to aggregate exposure information, improving risk assessment and catastrophe preparedness.
Banks could potentially use verified insurance information when assessing credit, while government agencies could use relevant coverage data for more targeted welfare delivery.
UPI Moment for Insurance
The comparison with UPI reflects the broader ambition of the proposal. UPI changed payments by making interoperability a default feature rather than simply digitising existing transactions.
If implemented effectively, PIR could reduce information gaps, facilitate portability, improve claims processes, strengthen fraud detection and potentially support higher insurance penetration.
Static GK Tip: IRDAI is the statutory insurance regulator in India. It was established in 1999 under the IRDA Act and regulates and develops the insurance sector.
Challenges Ahead
The effectiveness of PIR will depend on privacy, consent, governance and participation. Federated architecture can reduce centralisation risks, but information-sharing mechanisms must still comply with applicable data-protection requirements.
Another challenge is participation. If initial adoption remains voluntary, the registry may have incomplete information, limiting its usefulness. The proposed governance model and incentives for insurers will therefore be crucial to creating a reliable and neutral insurance information ecosystem.
Static Usthadian Current Affairs Table
Public Insurance Registry Could Reshape India’s Insurance Ecosystem:
| Fact | Detail |
| Proposed initiative | Public Insurance Registry |
| Regulator | IRDAI |
| Core concept | Common digital information layer |
| Digital model | Digital Public Infrastructure |
| Key design principle | Interoperability |
| Architecture | Federated with source-system primacy |
| Existing institution | Insurance Information Bureau |
| Proposed governance | Not-for-profit entity owned by IRDAI |
| Policyholder benefit | Consolidated insurance information |
| Insurer benefit | Better underwriting and fraud detection |
| Regulatory benefit | Aggregate exposure and oversight data |
| Major challenge | Privacy, consent, adoption and governance |
| UPI comparison | Interoperability-driven digital infrastructure |
