Insurance companies will be able to launch insurance products without prior approval; IRDAI gave the green signal

The Insurance Regulatory and Development Authority (IRDAI) approved the launch of health and other general insurance without prior approval on Wednesday.

IRDAI Stated in a Press Release that:

“The Insurance Regulatory and Development Authority of India (IRDAI) has extended the ‘Use and File’ procedure for all the Health Insurance products and almost all the General Insurance products in line with the reforms agenda taken up towards having a fully insured India. This is a stepping stone towards improving the ease of doing business in the insurance sector by moving from the current regime requiring prior approval for launching the products to a regime where products could be launched without any prior approval.

These initiatives are expected to help the insurance industry introduce appropriate products in a timely manner. The insurance industry is expected to take use of this opportunity to introduce customised and innovative solutions, as well as expand the options accessible to policyholders, in order to meet the market’s changing needs, which will help to increase insurance penetration in India.”

According to Tapan Singhal, CEO of Bajaj Allianz General Insurance, the IRDAI initiative will assist insurers in bringing new products to market more quickly. Insurance companies will be permitted to advertise their products with an application for approval with IRDAI under the ‘use and file’ approach. Companies will not have to wait as long to supply creative products to their customers as a result of this.

New rules will be applicable on these products

General insurance businesses can apply for retail and commercial insurance products connected to fire, sea, motor, and engineering business through the ‘use and file’ approach, according to IRDAI’s new guidelines. A ‘use and file’ technique is used to apply the initial product, the Health Plus Life Combi product, and the Health Package products.