The Insurance Regulatory and Development Authority of India (IRDAI) has authorised life insurers to launch products without prior approval.
“This move will enable life Insurers to launch most of the products (except individual savings, individual pensions and annuity) in a timely manner according to the dynamic needs of the market,” IRDAI said in a release on Friday.
The permission to products without pre-approval comes with certain conditions.
The insurers were directed to put in place a board approved product management and pricing policy which should duly be informed to the regulator.
The move allows all insurers—life, health, general—follow ‘use and file’ procedure as the insurance regulator had already extended the provision to heath and general insurance products.
According to the IRDAI, the relaxation will result in improving ease of doing business for insurers and also lead to expansion of the choices available to policyholders.