High exit-load gets due attention in the insurance product committee report
One of the key issues flagged by the product committee that was set up by the Insurance Regulatory and Development Authority of India (Irdai) in January was how to reduce the surrender penalty in traditional plans that also double up as investment products.
The committee that was constituted to review product regulations came up with 12 key recommendations in a report that Irdai put up for public comments on 14 December. These recommendations include various aspects of life insurance products such as better product approval mechanism, widening investments norms, revamping pension business and ways to improve persistency. The full report can be read here
We pick and decode four key recommendations around high exit loads, persistency and disclosures.
