In a bid to boost business efficiency and streamline regulations, the Insurance Regulatory and Development Authority of India (IRDAI) issued an order on July 29, 2022. The directive mandates the formation of a Regulation Review Committee (RRC) comprising representatives from diverse stakeholder groups, according to an IRDAI circular. The objective is to simplify regulations, enhance ease of doing business, and transition towards a more effective principles-based regime. Nine sub-groups, including industry experts, have been established to gather input and expertise for this regulatory evolution.
The RRC, comprising representatives from all corners of the insurance industry, has recommended the repeal of several existing regulations, including the IRDAI (Micro Insurance) Regulations, 2015; IRDAI (Health Insurance) Regulations, 2016; and IRDAI (Unit Linked Insurance Products) Regulations, 2019, among others. The culmination of these efforts is the draft of the IRDAI (Insurance Products) Regulations, 2023.
The primary objective of these proposed regulations is to empower insurers to respond swiftly to emerging market needs, fostering an environment that promotes ease of doing business. Additionally, the new framework aims to improve insurance penetration, safeguard policyholders' interests, and encourage insurers to adopt robust governance practices in product design and pricing.
Key highlights of the proposed regulations include provisions that will enable insurers to ensure sound and responsive management practices. This will contribute to effective oversight and due diligence concerning insurance products, including innovative offerings that take into account the best interests of policyholders.
IRDAI has invited all stakeholders to provide their valuable feedback on the proposed regulations. The call for comments and suggestions is open until 5:00 PM on January 3, 2023. Stakeholders can submit their inputs in the prescribed format to actuarial-policy@irdai.gov.in, with a copy to urmi.jain@irdai.gov.in and narendra@irdai.gov.in.
The proposed regulations mark a step towards a more dynamic and responsive insurance sector in India, according to the circular. By streamlining and modernizing the regulatory framework, IRDAI aims to create an environment that not only facilitates the growth of the insurance industry but also ensures the protection and well-being of policyholders. It is a stride towards a future where insurance products are designed to meet the evolving needs of the market while upholding the highest standards of governance and customer protection, according to the circular.
