The Insurance Regulatory and Development Authority of

Solution

The Insurance Regulatory and Development Authority of India (IRDAI) has expanded the scope of the existing 'use and file' procedure, allowing insurance companies to introduce Unit Linked Insurance Plans (ULIPs) and combi plans (combination of life and health insurance plans) without the need for prior approval from the regulator.  Under the revised guidelines, insurers can launch products first and then fill the details with the regulator using the 'use and file' procedure. This procedure applies to health insurance products, life insurance products, and most general insurance products.  The recent modifications include the inclusion of individual and group unit-linked life and health insurance products under para No.10.4 of Section B of Chapter I. Life insurers can now utilize and file these products under the revised procedure.  Additionally, a new para 10.10 has been introduced, allowing the introduction of "combi products" where a life insurer acts as the lead insurer. Compliance with the norms set by IRDAI is mandatory for life insurers offering combi products.   In an effort to streamline the product launch process, the regulator has eliminated the segregated fund identification number (SFIN) clearance process. This change reduces administrative obstacles for insurers, enabling smoother and faster product launches. However, life insurance companies must still adhere to other prudential and exposure norms outlined in the IRDAI (Investment) Regulations, 2016 for each ULIP segregated fund and overall AUM of ULIPs.   Furthermore, IRDAI has allowed the addition of new unit-linked funds to existing products, expanding investment choices for customers and promoting incremental innovation in the industry.