Insurance regulator IRDAI has extended the scope of the ‘Use and File’ procedure to cover more life insurance products.
Essentially allowing insurers to launch a product first and then submit details to the regulator subsequently, the procedure has now been extended to group unit-linked insurance products, individual ULIPs which are offered with new funds and combi products in which the life insurer acts as the lead.
“Now, life insurers can launch these products without prior approval, enhancing ease of doing business and encouraging swift response to the market demands. This will boost innovation in the products resulting in better choices for the customers,” IRDAI said on Friday. In October 2022, the regulator had extended the ‘Use and File’ procedure to all term insurance products, individual ULIPs with existing funds and non-linked group insurance products.
The new additions are based on the feedback from industry and to facilitate insurance penetration, IRDAI said.
“This is a continuation of a series of steps the regulator has taken to strengthen insurance penetration in the country. This modification will enable insurers to increase their go-to-market speed and in turn help them stay in sync with the dynamic demands of today’s customers,” Edelweiss Tokio Life Insurance MD and CEO Sumit Rai said.
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