Regulator Irdai on Wednesday permitted insurers to launch health and most of the general insurance products without its prior approval, a move aimed at having a fully insured India.
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, the regulator said.
“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,” it said.
The regulator further said it is envisaged that the initiatives will enable the insurance industry in launching suitable products in a timely manner.
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, it added.
Bajaj Allianz General Insurance MD and CEO Tapan Singhel said the proactive initiative will provide some necessary mechanisms to insurance companies.