IRDA: Life insurance regulator IRDA today allowed insurance companies to introduce new products without any prior permission. For this, the ‘use and file’ process has been expanded in the case of most life insurance products. This provision has been made applicable to life insurance a few days after the Insurance Regulatory and Development Authority of India (IRDAI) gave similar discounts in health insurance products as well as general insurance products.
IRDA allows life insurers to offer products without prior permission
In a press release, IRDA said that as part of the corrective steps taken towards creating a fully insured India, it has enhanced the ‘use and file’ process for most life insurance products. “This means that now life insurance companies can launch these products in the market without the permission of IRDA,” the regulator said.
Maturity in Insurance Industry
Earlier, in the early stages of the insurance industry, it was mandatory for insurance companies to take prior approval before launching any life insurance product. However, considering the maturity of the industry over time, it is envisaged that necessary relaxations may be allowed.
This move will enable life insurers to introduce most of the products (except personal savings, individual pension and annuity) in a timely manner as per the changing needs of the market.
According to IRDA, this relaxation will facilitate ease of doing business for insurance companies and will also expand the options available to policyholders. IRDA said life insurance companies are expected to have a board-approved product management and pricing policy.
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