The Insurance Regulatory and Development Authority of India has offered general insurance companies greater flexibility in the design and pricing of products under a diversified business and has allowed them to launch the same in the market without prior regulatory approval.

The decision was taken “to facilitate the industry to respond rapidly to emerging market needs in terms of design and pricing of generic products and to promote efficiency in the conduct of general insurance business”. IRDAI Told.

This is part of IRDAI’s effort to promote ease of doing business.

The regulator said that diversified insurance under the general insurance segment is a unique segment that requires a creative approach to meet the ever-evolving needs of the policyholders.

Earlier, products with a sum insured of more than Rs 5 crore could be launched without IRDAI’s prior approval. But insurance companies needed regulatory approval before launching products with a sum assured of up to Rs 5 crore.

Now, IRDAI said that it has extended the ‘use and file’ process, ie. launch insurance products All categories without prior approval “in our constant endeavor to promote creative innovation and ease of doing business”.

This decision has come into force with immediate effect.

This will provide significant impetus to general insurance companies for broad-based approach in designing and timely launch of products in line with market requirements.