According to media reports, the Insurance Regulatory and Development Authority (IRDA) has put pension product approvals on hold due change in some policies. Most insurance companies filed their pension products with IRDA for approval in December 2011 after the 4.5% minimum guaranteed return clause on
pension products was rolled back on insurers’ demand.
The regulator has now written to insurance companies that the approval process has been stopped as it has to take some policy decisions.
View: The launch of new products and delay in approvals from IRDA has been one of the key reasons for sluggish growth in insurance premiums. The IRDA’s decision to hold the approval of new pension products will add pressure on premium growth .
Further the media reports suggests that IRDA could again bring the minimum guarantee clause on pension products which could be negative for insurers. Moreover if there is any change in existing norms the companies will again have to file for new products and approvals and hence will impact the volume growth in premiums
....more info
pension products was rolled back on insurers’ demand.
The regulator has now written to insurance companies that the approval process has been stopped as it has to take some policy decisions.
View: The launch of new products and delay in approvals from IRDA has been one of the key reasons for sluggish growth in insurance premiums. The IRDA’s decision to hold the approval of new pension products will add pressure on premium growth .
Further the media reports suggests that IRDA could again bring the minimum guarantee clause on pension products which could be negative for insurers. Moreover if there is any change in existing norms the companies will again have to file for new products and approvals and hence will impact the volume growth in premiums
....more info