India: Life insurers to seek more time to comply with new policy surrender rules
Source: Asia Insurance Review | Sep 2024
Life insurance companies are planning to seek a three-month deadline extension from the regulator on the implementation of surrender value rules.
In June 2024, the IRDAI issued the ‘Master Circular on Life Insurance Products’, which, among other provisions, contains rules to improve surrender payouts to customers. The regulator stipulates that the new rules are to be implemented by 30 September 2024.
However, life insurers say that they need more time to revise and re-price their products and re-negotiate terms with distributors, reported Business Standard, citing industry sources.
The industry is likely to see fewer product launches during this period because most insurers will be busy recalibrating or revising their products to comply with the new rules. A