This comes days after the insurance sector regulator gave similar relaxation in health insurance products as well as general insurance covers
This comes days after the insurance sector regulator gave similar relaxation in health insurance products as well as general insurance covers
Insurance sector regulator IRDAI on June 10 extended the ‘use and file’ process for most life insurance products, allowing insurers to launch new products without prior approval of the regulator.
This comes days after the Insurance Regulatory and Development Authority of India (IRDAI) offered similar relaxation in health insurance products as well as general insurance covers.
In a press release, IRDA said that in its continuous endeavor towards the reform agenda taken towards creating a fully insured India, it has enhanced the ‘use and file’ process for most of the life insurance products.
“This means that now life insurance companies can launch these products even without the permission of IRDA,” the regulator said.
Earlier, when the industry was in its nascent stage, it was made mandatory for insurance companies to take prior approval before launching any life insurance product.
However, with the maturity achieved by the industry, it is envisaged that necessary relaxation may be allowed, IRDAI said.
The move will enable life insurers to launch most products (except individual savings, individual pension and annuity) in a timely manner as per the dynamic needs of the market.
According to IRDA, the exemption will make it easier for insurance companies to do business and will also expand the options available to policyholders.
“The life insurance industry is expected to utilize this opportunity to respond rapidly to emerging market needs, in terms of design and pricing of insurance products resulting in greater choices for policyholders, This will further help in increasing the insurance penetration in the country.” Said it.
IRDAI said life insurance companies are expected to have a board-approved product management and pricing policy.