Move expected to help firms respond faster to emerging market needs, allow more choices for policyholders
Move expected to help firms respond faster to emerging market needs, allow more choices for policyholders
Insurance regulator IRDAI has decided to allow life insurers introduce many products without prior approval, a move expected to help the firms respond faster to emerging market needs and result in more choices for policyholders.
The ‘Use and File’ procedure is being extended for most of the life insurance products, the Insurance Regulatory and Development Authority of India (IRDAI) said on Friday. Barring individual savings, individual pensions and annuity, the life insurers can unveil other products without prior approval in a timely manner according to the dynamic needs of the market. It will also improve the ease of doing business for the insurers,” the regulator said.
The life insurers are expected to have a board approved product management and pricing policy. The board will also constitute a Product Management Committee (PMC), with Appointed Actuary, Chief Risk Officer, Chief Marketing/Distribution Officer, Chief Technology Officer and Chief Compliance Officer of the insurer as members. It will also have an option to include other members of its senior management as invitees. The PMC will have to review and approve the products/riders in line with BAPMPP.
The relaxation comes on the back of the maturity levels attained by the industry and is in contrast to the nascent stage when it was mandatory for the insurance companies to take prior approval before introducing any life insurance product. Earlier this month, IRDAI had announced similar relaxations to all health insurance products and almost all general insurance products. The regulator said it was pursuing reform agenda towards having a fully insured India.
