This Article is From Jun 10, 2022

Life Insurance Products Can Be Launched Without Prior Approval: IRDAI

Insurance regulator (IRDAI) on Friday allowed insurers to launch new life insurance products without its prior approval.

Life Insurance Products Can Be Launched Without Prior Approval: IRDAI

The move comes after similar relaxations were extended to health and general insurance products.

New Delhi:

Insurance regulator (IRDAI) on Friday allowed insurers to launch new life insurance products without its prior approval. The move comes after similar relaxations were extended to health and general insurance products last week.

"This will result in improving ease of doing business for the insurers and also lead to expansion of the choices available to the policyholders," the Insurance Regulatory and Development Authority of India said.

It will enable life insurers to launch most of the products (except individual savings, individual pensions and annuity) on time, the regulator added.

"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 an 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," IRDAI stated. 

The committee shall review and approve the products/riders in line with BAPMPP, it further added.

"Life insurance companies reported high (101 per cent) growth in APE (annual premium equivalent) during May 2022, on a low base (May 2021) that was affected by a severe Covid strain. The preceding period (May 2020) was also affected by lockdowns, making the comparison difficult," Kotak Institutional Equities said in a report.

The IRDAI also said that the life insurance industry is expected to use this opportunity to respond faster to emerging market needs.

"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," said Kapil Mehta, Co-Founder, SecureNow Insurance Broker.

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