SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • Insurance Life insurers can roll out new products without IRDAI’s nod

    Life insurers can roll out new products without IRDAI’s nod

    IRDAI allows life insurers to follow ‘use and file’ norms.
    Team Cafemutual Jun 11, 2022

    Listen to this article

    After IRDAI allowed health and general insurers to follow ‘use and file’ norms, it has opened gate for innovations in life insurance policies too.

    IRDAI has allowed life insurance companies to follow ‘use and file’ guidelines i.e. they can launch a new policy in the market and apply for approval within a certain time frame later.

    The ‘use and file’ gives flexibility to insurers to launch customized and innovative products and fix up its premium price.

    With this, life insurers can introduce new products in individual term policies, ULIPs, group term and riders including term, accidental death, disability, critical illness and terminal illness.

    However, life insurers cannot make changes to traditional policies like endowment and money back policies.

    In a circular, IRDAI said, “This move will enable life insurers to launch most of the products (except individual savings, individual pensions and annuity) in a timely manner according to the dynamic needs of the market. This will result in improving ease of doing business for the insurers and also lead to expansion of the choices available to the policyholders.”

    Further, IRDAI has clarified life insurers will have to get their new products approved from the Board.  The insurance regulator said, “The life insurers are expected to have a board approved product management and pricing policy (BAPMPP). The Board shall also constitute a Product Management Committee (PMC), which shall have Appointed Actuary, Chief Risk Officer, Chief Marketing/Distribution Officer, Chief Technology Officer and Chief Compliance Officer of the insurer as members and also an option to include other members of its senior management as invitees. The PMC shall review and approve the products/riders in line with BAPMPP.”

    Kapil Mehta, Co-Founder, SecureNow Insurance Broker feels that the move will encourage the industry to come out with innovative solutions. He said, “It is an excellent step because the product approval process has been very simplified. The insurers are responsible for new products and need to just inform the IRDAI after launch. The IRDAI has specified the boundaries or principles for all products so that policyholder interests are not compromised. I think this will result in many new life products and variants being introduced.”

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.
    Cafemutual is an independent media platform and focuses on providing knowledge and information for the benefit of finance professionals. We do not promote any particular brand or asset category.