New products

IRDAI allows insurers to launch new products without prior regulatory approval

On June 10, India’s Insurance Regulatory and Development Authority (IRDAI) extended the “use and deposit” procedure for most life insurance products, allowing insurers to launch new products without prior approval from the regulator.

The new decision comes days after IRDAI extended similar relaxations to health insurance products as well as general insurance covers. IRDAI had made the previous announcement on June 1, 2022.

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The insurance regulator aims to reform the agenda adopted to have a fully insured India, “This now means that life insurance companies can also launch these products without prior approval from Irdai”, he said. he stated in a press release.

Previously, it was mandatory for insurance companies to get pre-approval before launching any life insurance product when the industry was in its infancy.

With the industry maturing, it is envisaged that necessary relaxations may be permitted, IRDAI added.

“This decision will allow life insurers to launch most products (except individual savings, individual pensions and annuities) in a timely manner based on dynamic market needs,” the press release said.

IRDAI believes the easing will result in improved ease of doing business for insurers and will also lead to expanded choices for policyholders.

“The life insurance industry should take advantage of this opportunity to respond more quickly to the needs of emerging markets, in terms of insurance product design and pricing, which will provide more choice to policyholders, which will further contribute to increase insurance penetration in India,” it said.

Life insurers should have a board-approved product management and pricing policy, IRDAI said.

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