Based on the Regulation Review Committee’s (RRC) recommendations, IRDAI released a consolidated EoM regulation, including commissions. IRDAI released an exposure draft on the EoM in November 2023, including commission for life and non-life insurance companies. Instead of keeping separate commission-related and EoM regulations, the RRC suggested merging them. The new regulations will take effect on April 1, 2024.
The IRDAI said “the consolidation of regulations signifies a significant milestone in the regulatory evolution of the insurance sector. By streamlining compliance requirements and enhancing transparency and accountability, the move empowers insurers to navigate the dynamic business landscape with agility and confidence.”
Moreover, the shift towards principle-based regulations heralds a new era of adaptability and innovation within the insurance industry. By providing insurers with the flexibility to tailor their operations to meet evolving market demands, the regulatory framework fosters a culture of innovation while simultaneously safeguarding the interests of policyholders.
IRDAI has granted Certificate of Registration to a new health insurer namely, Narayana Health Insurance Limited to carry health insurance business in India. With this the number of insurers operating in health insurance segment has gone up to 6.
General and health insurers recently rolled out a ‘Cashless everywhere’ facility recently, allowing patient-policyholders to approach any hospital and make a request for cashless treatment. This move will mean greater convenience for customers as they will not have to shell out huge sums up front from their pockets. For insurers, it potentially enables better control over fraudulent claims.
In amidst of all developments one of the grey area has been the push for education and training. The overall need and intent for education is missing which is not a good sign. Sector such as insurance needs continuous focus on skill development of Intermediaries as well as employees. IRDAI should think about advising Insurance Companies to spend a minimum amount on education and training, may be under CSR initiative or any other head.
