IRDAI allows meInsurance companies will launch new products without approval
Highlight
- IRDAI said that its decision is in line with the reforms agenda taken towards creating a fully insured India
- The regulator said it is also a step towards improving the ease of doing business in the sector.
- It expressed hope that the decision would enable the industry to launch suitable products
Insurance companies can now launch insurance products without obtaining any prior approval from the Insurance Regulatory and Development Authority of India (IRDAI).
IRDAI, which is tasked with regulating and licensing the insurance industry, on Wednesday announced the extension of the ‘use and file’ process to all health insurance products and almost all general insurance products.
The decision is in line with the reforms agenda taken towards creating a fully insured India and is also a step towards improving ease of doing business in the insurance sector, the regulator said in a statement. It expressed hope that with this initiative the insurance industry would be able to launch suitable products in a timely manner.
Till now, insurance companies had to take prior approval from the regulator to launch new products.
IRDAI said, “The insurance industry is expected to utilize this opportunity to meet the dynamic needs of the market for introduction of customized and innovative products and expansion of options available to policyholders, which will help in increasing the insurance penetration in India. will help.” Told.
Commenting on IRDAI’s move, Rachit Chawla, Founder and CEO, Finway said that this decision will ensure break-free progress not only for companies but also for other businesses. He said that during the pandemic, when enterprises were battling a slowing market and operational facilities were shut down, an unintentional accident such as a warehouse fire or theft was a major blow to businesses. In those difficult times, it was insurance companies that played the role of savior, saving businesses from closure and bankruptcy.
“The relevance of this sector is quite significant, especially for small and medium-sized companies, amidst turbulent market conditions,” he said, adding, “This decision will bring a lot of innovation to the insurance industry, launching tons of customized products And many products and pricing will be simplified. The use and file process will lead to an increasingly used process for all products, new filing and revision.”
Whether the latest decision will help the government meet its goal of being a fully insured India, he said, “It will definitely make a positive impact. There are many sectors which need customized products as per their demographic requirements. The decision will cause an impact and increase in people taking out health insurance, which is a very positive mood for the industry.”
Chawla said a win-win equation could be created by looking for a majority of insurance services, if not across the country.
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