Irda asks life insurers to submit 'Product Planner' every year

This planner would serve to give an indication of the number of products that the insurer proposes to file each quarter

In an attempt to reduce time taken for product approvals, the Insurance Regulatory and Development Authority (Irda) has asked life insurers to submit a 'Product Planner' before the beginning of every financial year. This planner would give an indication of the number of products that the insurer proposes to file each quarter.

Irda has said that If any market research has been conducted in assessing the need for the proposed products, the insurer would need to give details of the same in the 'Product Planner'. In order to expedite the product approval process, the Authority shall require certain information from the insurers to plan for resources available, to support planned filings and to ensure fairness across all the insurers while approving the products," said Irda in a circular to all life insurance company chief executives.

Presently, Irda follows the file and use method of application, wherein insurers submit an application to obtain prior approval of the Authority to introduce/modify insurance products. These companies are not allowed to sell these products, without the Irda confirming in writing and giving approval for the product to be introduced in the market.

From next year onwards, insurers have been advised to file this planner, at least 45 days before the beginning of the next financial year onwards, that is, before February 15 of each year. For 2013-14, insurers have been asked to submit the 'Product Planner' on or before April 30, 2013.

Also, from the next financial year, Irda has said that if the products to be filed in a financial year exceed five, the insurer shall furnish the supporting market research, product-wise persistency for 13th month, 25th month and 37th month as on April 30 of the previous year.