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IRDAI sets up panel on index-linked life products

Insurance regulator IRDAI has constituted a six-member working group on index-linked products following requests for permission from life insurers to introduce such products.

“Current IRDAI product regulations do not specifically permit insurers to sell index-linked products. However, taking into considerations requests from life insurers, it has been decided to constitute a working group to examine various aspects,” it said.

Serving customer need

The working group, to be led by Dinesh Pant, appointed actuary of LIC of India, will examine the need for such products in India and how they will better serve needs and interests of customers relative to traditional savings product.

It will also examine the products earlier available in the market in terms of product structure, ease of customer understanding and administrative processes and any other matter of relevance.

The other terms of reference of the working group include to study practices of other jurisdictions in respect of Index Linked Product structure and operations; and to make recommendations on specific aspects like product structure and its pricing. It has also been asked to suggest possible amendments to current regulations like product and investment regulations.

The group, whose other members are from private life insurers and IRDAI, has been given two months to submit the report.

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