The IRDAI has formed a working group to look into recommendations for a new set of life product regulations. This nine-member group has representatives from both the IRDAI as well as the life insurance industry.
The recommendations were in a report submitted in December 2017 by a previous committee set up in 2017 to review regulations for life insurance products.
In a circular, the IRDAI said that the working group will meet as often as possible and submit its recommendations to the IRDAI Member (Actuary) within one month.
The December 2017 report proposed far-reaching changes for the insurance industry, including self-regulation by life insurers, higher surrender values, flexible investment policies for insurance and offering loans against unit-linked insurance products, among others.
Also, the committee recommended a level playing field in health insurance business for life insurers on par with general insurers and standalone health insurance. This would allow them to sell indemnity-based products, provide value-added services like wellness programmes, offer all-coverage terms and bring parity in commission levels.