CIBIL in process to set up credit bureau for insurance sector

India Infoline News Service | Mumbai |

According to current norms, it is not mandatory for insurers to consider the credit history and use the existing credit bureaus for charging premiums to policyholders

Credit Information Bureau (India) Ltd (CIBIL) is in talks with Insurance Regulatory and Development Authority (IRDA) to explore a possible tie-up for setting up a credit bureau for the insurance sector, according to a media report.

The proposed insurance credit bureau will act as a consumer rating agency, maintaining information on individual claims / credit history and generating a score based on creditworthiness of customers and punctuality in premium payments, the report added.

According to current norms, it is not mandatory for insurers to consider the credit history and use the existing credit bureaus for charging premiums to policyholders. Using the new bureau, insurers would be able to access key data on individuals to charge premiums accordingly.

Currently, banks and NBFCs (non-banking finance companies) use Cibil’s services for taking lending decisions.

 

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