Insurance companies can now launch new products without IRDAI approval

Image source: FREEPIK (REPRESENTATIONAL)

IRDAI allow meinsurance companies to launch new products without approval

Strong points

  • IRDAI said its decision is in line with the reform agenda undertaken to have a fully insured India
  • The regulator said it was also a step towards improving the ease of doing business in the sector.
  • He expressed the hope that the decision will allow the industry to launch suitable products

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

IRDAI, which is responsible for regulating and licensing the insurance industry, announced on Wednesday the extension of the “Use and File” procedure to all health insurance products and almost all health insurance products. general insurance.

The regulator said in a statement that the decision is in line with the reform agenda undertaken to have a fully insured India and also a step towards improving the ease of doing business in the insurance sector. He expressed hope that the initiative will enable the insurance industry to launch suitable products in a timely manner.

Until now, insurance companies were required to obtain prior approval from the regulator to launch new products.

“The insurance industry should take advantage of this opportunity to introduce personalized and innovative products and expand the choices available to policyholders to meet the dynamic needs of the market, which will further help improve insurance penetration in India. “, IRDAI said.

Commenting on IRDAI’s decision, Rachit Chawla, Founder and CEO of Finway, said the decision will ensure seamless progress not only for companies, but for other companies as well. He said that during the pandemic, when businesses were struggling with a slow market and interrupted operating facilities, an unintentional incident such as a fire or theft in the warehouse was a big shock for businesses. In these difficult times, it is the insurance companies that have acted as saviors while rescuing businesses from closures and bankruptcies.

“The relevance of this sector is quite significant in turbulent market conditions, especially for small and medium-sized businesses,” he said, adding that “this move will bring a lot of innovation to the insurance industry. , tons of custom products will be launched, and a number of products and prices will be simplified.The usage and filing procedure will make using the process faster for all products, new filings and changes.

While the latest decision will help the government achieve its goal of having a fully insured India, he said, “It will definitely have a positive impact. Many regions need customized products according to their demographic needs. decision will lead to impact and an increase in the number of people taking out health insurance, a very positive mood for the industry.”

Chawla said a win-win equation can be created if the majority jumps to seek insurance services, if not the whole country.

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Kristan F. Talley