IRDA Issues Fresh Guidelines For Group Products Pricing
The Insurance Regulatory and Development Authority (IRDA) has issued new norms for pricing of group products and immediate annuity products.
“It is observed in group products that the premiums approved under file and use procedure and the actual premium quoted to various groups appear different...Hence, the Authority withdraws the cited circulars with immediate effect,” TS Vijayan, chairman, IRDA said.
According to the new norms for annuity products, life insurance companies will have the freedom to vary annuity rates in the range of -10% to +10% of the approved annuity rates without taking prior permission from IRDA, provided the change is due to changing interest rates scenarios.
These guidelines will come into effect from October 1. The IRDA also took back two existing circulars issued in July 2006 and March 2008 with immediate effect.