Page 8 - Insurance Times March 2019

IRDAI

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IRDAI permits Insurers for IRDAI for uniform standard health product
testing of products under Insurance regulator IRDAI has asked all non-life insurers (general and health)
to offer a "Standard Health Insurance Product" as it
sandbox approach is essential for customers to have access to a basic
IRDAI has granted permission to in- health cover that caters to their needs.
s u r a n c e
companies "This standard product shall have the basic manda-
and inter- tory covers, which shall be uniform across the mar-
mediaries ket. No additional add-ons or optional covers are al-
to test lowed to be proposed to offer, along with the stan-
their prod- dard product," the insurance regulator said.
ucts under the regulatory sandbox Rakesh Jain, CEO, Reliance General Insurance, said,
approach for a period of six months "This is something that unites every insurance company to at least get a cus-
(which can be extended upto 12 tomer on board with a simple product. The biggest struggle in this environment
months) before launching it in the has been to get a person to buy a health product. The struggle in India has been
market. to attract young people to buy health covers."
"However, if the proposal covers The regulator has let non-life insurers determine the price of the product. How-
5,000 persons or completes Rs 50
ever, they have to keep in view that the cover that has been proposed will have
lakhs of premium or any other pa- to comply with the norms specified under the IRDAI (Health Insurance) Regu-
rameter which the authority speci-
fies, the proposal will deem to have lations, 2016. "The coverage will be the same but the pricing will vary. All the
insurance companies will be pricing it on experience," Jain added.
been completed," said IRDAI.
The regulator has also said that the
applicants be it an insurer, insurance IRDAI warns Insurers against fraud reinsurance cover
intermediaries or any other entity IRDAI has put out a warning to Insurers, asking them to be vigilant against In-
who are planning to apply for the surance brokers offering fraud reinsurance
process and test their product cover from overseas. The warning has become
should have a minimum net worth necessary as brokers are tapping into cash-
of Rs 25 lakhs for last three years. strapped domestic insurers to provide them
The regulator through the "Regula- 'shadow capital' to expand their business.
tory Sandbox Approach" wants to IRDAI has asked all companies to discuss the is-
provide a space to facilitate innova- sue in their boardrooms. It has described the
tions in the insurance sector, make situation as a breakdown of risk management.
the insurance products more afford-
able and relevant for the insured The letter issued this month says: "There should be regular reviews of the sys-
and give a boost to insurance pen- tems involved and in reporting relevant matters to the risk management panel
etration. (of the board) for necessary monitoring.

8 The Insurance Times, March 2019