Insurance Regulatory and Development Authority (Irda) is yet to receive any communication from insurance companies under the proposed ‘use and file’ method of introducing insurance products, chairman TS Vijayan said on Wednesday.
The use and file system allows insurers to first introduce basic insurance products to the market and then file for approval to the regulator. Currently, the regulator allows insurers to launch products under the file and use system, which requires them to get approval ahead of a new product being launched.
“We had asked life companies and non life council to suggest type of products that do not need prior approval of regulator and wordings of the products. Once it is standardised, use and file method can be used for product approvals” Vijayan told reporters on the sidelines of an event organised by the insurance regulator for consumer education. The Irda is yet to issue any formal guidelines for this system.
The Irda chairman also confirmed that the insurance regulator has approved all the products filed under the new product design guidelines issued recently. Insurers were recently given a three month extension on their deadline, from October 1 to December 31 now, for filing these products.
Seperately, a report released by the Insurance Information Bureau Of India at the event showed that the average ratio of agency penetration for India stands at 3.15 to every 1,000 customers.