The insurance regulator is considering allowing life insurance policy holders to switch from one insurer to another without surrendering their existing policies and thus losing a portion of the premium paid.
Discussions to allow portability in life insurance are in early stages and it is likely to happen after the industry moves to a completely digital form of transacting and managing insurance products, said three people, including a regulatory official, on condition of anonymity as the discussions are yet to be formalized.
By allowing portability, the Insurance Regulatory and Development Authority of India (Irda) aims to save customers the cost of surrenders while changing policies if they are unsatisfied with their existing insurer. The regulator had already allowed portability in health insurance policies in 2011.
