Insurers can launch product first, then file them: IRDA

Mumbai: IRDAI has allowed insurers to launch a product first and then file them with the regulator for all health insurance products and almost all general insurance products. However, it will increase the responsibility of the insurers.

Bizz Buzz interacted with the stake holders in the industry to know its impact. Sanjay Dutta, Chief - Underwriting & Claims, ICICI Lombard, GIC, said, "The IRDAI's announcement will bring around a conceptual change that has been long pending and much-needed to ensure advancement of the insurance ecosystem. Insurers will now be able to develop new solutions based on individual preferences and current needs."

However, he went on, we will now have a greater responsibility and opportunity to ensure consistent innovation to develop products based on constant evaluation of customer need and improved pricing of products for our policy holders. Hence we should take care to design products with customer interest as the paramount objective. The regulators move shows that the government is committed to making India a fully insured country, and the insurance industry is definitely excited about it.

Commenting on it, Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance said, "The proactive initiative by IRDAI will provide some necessary mechanisms to insurance companies who wish to bring out more innovative products in the market at a faster frequency."

Use and File procedure essentially means that insurers can introduce their products to the market on filing with the regulator thus avoiding a longer waiting duration in offering innovative insurance solutions to customers in order to help address the dynamic environment, he said.

Customers have the opportunity to choose from a plethora of insurance products that best suits their needs and thus secure their lives against any exigencies."

Sylvester Carvalho, Lead- Product, Riskcovry, said, 'This reform authorizes insurers to launch products innovative and customized to buyers avoiding a long waiting duration. Hence, the insurance industry would now be better adaptive in designing and pricing products to meet the evolving insurance market more efficiently. The new guidelines will help the industry to launch products faster". Until now, the regulatory regime required prior approval for launching products. Owing to the renewed guidelines IRDAI released on 1st June, insurance companies can now 'use and file' products, making the TAT to launch a product much shorter.