Page 12 - Insurance Times April 2024

IRDAI chief asks insurance "There is a need to come out of the tra- governing guaranteed surrender value
ditional and conventional roles and & special surrender value along with
players to underwrite dis- embrace dynamism and agility and also disclosures thereof, IRDAI said in a

ruptions to improve mar- there is a need to see the sector from a statement.
different lens," he said, acknowledging
ket penetration These regulations, which will be effec-
the role of actuaries in designing the tive April 1, 2024, stipulate that the
Insurance players need to underwrite insurance products and drive the
disruptions to make the vision of 'insur- growth of the sector. surrender value is expected to remain
ance for all' a reality by 2047, regulator the same or even lower if policies are
IRDAI's chief Debasish Panda said. The IRDAI issues series of regu- surrendered within three years of the
chairman of the Insurance Regulatory purchase.
and Development Authority of India lations, tweaks regulation For policies that have been surrendered
(IRDAI) also emphasised that the ap- on surrender charges from the fourth to the seventh year, the
proach of 'one-size-fits-all' has become surrender value may see a minor in-
a thing of past due to the radical tech- Insurance regulator IRDAI has notified crease, it said.
nology driven changes taking place in a host of regulations, including on sur- A surrender value in insurance refers to
the industry. render charges wherein insurers have
to disclose such charges upfront. the amount paid by the insurers to the
It's time we retrieve our base, firm up policyholder upon terminating the
IRDAI (Insurance Products) Regula-
our resolve and collectively underwrite policy before its maturity date. If the
tions, 2024 merge six regulations into a
disruptions in the insurance sector and policyholder surrenders during the
make the vision of 'insurance for all' a unified framework aimed at enabling policy tenure, the earnings and savings
reality by 2047. In this process, the role insurers to swiftly respond to evolving portion will be paid to him or her.
of the actuary becomes paramount. The market demands, enhancing the ease
disruptions in the insurance sector can- of conducting business, and boosting The Insurance Regulatory and Devel-
insurance penetration. opment Authority of India (IRDAI) at its
not happen without the support of actu-
aries, Panda said at the 23rd global con- These regulations promote good gov- meeting held on March 19 approved
ference of actuaries organized by the ernance in product design and pricing, eight principle-based consolidated regu-
Institute of Actuaries of India here. including strengthening the principles lations, following the comprehensive
review of the regulatory framework for
the insurance sector.
IRDAI proposes to raise free look period from 15 to These regulations encompass pivotal

30 days domains such as safeguarding policy-
holders' interests, rural and social sec-
The insurance regulator IRDAI (Insurance Regulatory and Development Au-
tor responsibilities, electronic insurance
thority of India) has proposed to extend the free look period for the policies
marketplace, insurance products and
from the current 15 days to 30 days now.
operation of foreign reinsurance
This is one of the policies proposed to ensure protection of policyholders' branches, as well as aspects of regis-
interest. The others include the provisions relating to bank accounts, nomi- tration, actuarial, finance, investment
nation, issuing policies in electronic form, among others.
and corporate governance.
The proposal was part of draft on IRDAI (Protection of Policyholders' Inter-
ests and Allied Matters of Insurers) Regulations, 2024. One part covers provi- Join
sions relating to protection of the interest of the policyholders. The second
covers provisions relating to operation and allied matters of the insurers. Online Certificate
Siddharth Singhal, Business Head, Health Insurance, Policybazaar.com, says,
"The increase in the freelook period will be a positive move towards ensuring Course on
customer satisfaction and protection. It allows customers to review their
insurance policy and cancel it within a specified timeframe if they are not Reinsurance
satisfied with the terms and conditions. Extending the free look period from
15 days to 30 days will provide customers ample time to research and under- For details please visit
stand the policy they have purchased." www.smartonlinecourse.co.in

12 April 2024 The Insurance Times