The products proposals filed with the regulator are more serving the purpose of mutual fund and not pension, says IRDA.
IRDA chairman, J Hari Narayan, in a Global Insurance Summit of the Associated Chambers of Commerce and Industry (Assocham), gave the reasons for not clearing the pension products filed by the insurers.
According to the chairman, the current pension products filed for approval have features of mutual fund rather than pension products. The insurers were pension products in name only and the features do not lead to any kind of an annuity unless they are structured accordingly, claimed Hari Narayan. IRDA is currently scrutinizing each product minutely before approving so that the products are customer friendly.
The chairman also spoke about the need to re-look at the distribution approach followed in the industry. The attrition rates have gone up and the industry needs to curb the attrition rate. He highlighted the fact that each year 7 lakh agents clear the IRDA certification and simultaneously, the same number of agents exit from the industry. He advised the industry to develop innovative strategies to retain the agents in the industry.
“IRDA chairman
highlighted many important agendas that needs to be attended quickly,” said a
CFO of a top life insurance company present at the summit.