IRDAI allows insurance companies to launch new products without approval
Highlights
- IRDAI said its decision is in line with reforms agenda taken up towards having a fully insured India
- The regulator said it also a step towards improving the ease of doing business in the sector
- It expressed hope that the decision will 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 to extend the ‘Use and File’ procedure for all the health insurance products and almost all the general insurance products.
The regulator in a statement said that the decision is in line with the reforms agenda taken up towards having a fully insured India and also a step towards improving the ease of doing business in the insurance sector. It expressed hope that the initiative will enable the insurance industry to launch suitable products in a timely manner.
So far, insurance companies were required to obtain prior approval from the regulator to launch new products.
“The insurance industry is expected to use this opportunity for the introduction of customised and innovative products and expansion of the choices available to the policyholders to address the dynamic needs of the market, which will further help in enhancing the insurance penetration in India,” IRDAI said.
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