Insurance companies can now launch new products without IRDAI approval

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Image Source: Fripik (Representative)

IRDAI AllowsInsurance companies will launch new products without approval

Highlights

  • IRDAI says its decision is in line with the reform agenda towards a fully insured India.
  • The regulator said it was a step towards improving the ease of doing business in the sector
  • It is hoped that this decision will enable the industry to launch suitable products

Insurance companies can now launch insurance products without any prior approval from the Insurance Regulatory and Development Authority of India (IRDAI).

The IRDAI, which is responsible for regulating and licensing the insurance industry, on Wednesday announced an extension of the ‘use and file’ procedure for all health insurance products and almost all general insurance products.

In a statement, the regulator said the decision was in line with the reform agenda towards becoming fully insured India and a step towards improving the ease of doing business in the insurance sector. It is hoped that this initiative will enable the insurance industry to launch appropriate products in a timely manner.

Until then, insurance companies had to get prior approval from regulators to launch new products.

“The insurance industry is expected to use this opportunity to introduce customized and innovative products and expand the options available to policyholders to meet the dynamic demands of the market, which will further help increase insurance penetration in India,” IRDAI said.

Commenting on IRDAI’s move, Chawla, founder and CEO of Finway, said the decision would ensure uninterrupted growth not only for companies but also for other businesses. He said that during the epidemic, when enterprises were struggling with slow markets and shutting down operation facilities, an unintentional accident such as a warehouse fire or theft was a big push for business. In those difficult times, these were the insurance companies that acted as rescuers in rescuing businesses from bankruptcy and insolvency.

“The relevance of this sector is significant in the face of turbulent market conditions, especially for small and medium-sized companies,” he said. Usage and file processing will speed up the process for all products, leading to new filings and changes. “

Whether the latest decision will help the government meet the goals of fully insured India, he said, “will definitely have a positive impact. There are many regions that need customized products to meet the needs of the population. Very positive mood for. “

Chawla said a win-win equation could be created if the majority jumped in for insurance services, if not across the country.

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