At the IVCA Conclave 2023, Debasish Panda, Chairman of India’s Insurance Regulatory & Development Authority (IRDAI), confirmed his agency’s plans to investigate and deploy blockchain and Web3 technologies, aiming to digitize the insurance sector and incorporate the global trend. This signals IRDAI’s focus on improving the insurance sector and staying abreast of recent technological advancements.
India going with the Trend
The classic disruption of ChatGPT has already had an immense impact on the world, with over 100 million users in a relatively short amount of time, according to Panda. As the times are evolving, insurance companies are now transitioning into the realm of continuous underwriting and more streamlined insurance services.
Panda has revealed that with distributed ledgers, drivers can monitor insurance expenses in real time, according to the state of the roads and routes. The integration of smart contracts will facilitate swift, automatic payouts while removing the usual bureaucratic red tape that obstructs the sector.
Panda has observed a surge in global venture capital (VC) interest, which has precipitated a major shift in the marketplace. In the beginning of February, India’s InsuranceDekho raised $150 million in a Series A funding round, led by Goldman Sachs Asset Management and TVS Capital, with further increases in funding anticipated for Acto.
India Sees Significant Increase in Blockchain Adoption
India’s blockchain adoption is quite remarkable, already surpassing its neighboring countries and becoming a world leader in distributed ledgers. To further progress in this field, multiple programs have been developed to educate students – the most recent being the NITI Aayog’s learning module with 5ire. This module is dedicated to introducing blockchain as part of the learning curriculum and nurturing a new generation of tech-savvy individuals.
The Finance Minister of India, Nirmala Sitharaman, has announced a target of a 46% blockchain adoption rate in the coming years. Already, distributed ledger technology (DLT) has been successfully implemented in multiple sectors, such as finance, security, health, and housing. This rate of adoption aligns with the Minister’s comments and is a step toward a more efficient and secure economy.