IRDAI to Tighten Rules on Insurance Advertisements

May 8, 2023

The Insurance Regulatory and Development Authority of India (IRDAI) is the statutory body responsible for regulating and developing the insurance industry. Recently, the regulatory authority proposed to tighten norms for insurance advertisements by assigning higher responsibility to the senior management of insurers in designing and approving media campaigns for product promotion.

Proposed Amendments to Directives on Insurance Advertisements

The Insurance Regulatory and Development Authority of India (IRDAI) has suggested making changes to the guidelines for insurance advertisements and disclosure that were introduced in 2021. Under the proposed amendment, each insurer will be required to constitute an advertisement committee comprising at least three members, to undertake marketing, actuarial, and compliance functions of the insurer. The objective of the amendment is to assign higher responsibility to the senior management while designing and approving the advertisements for the consumption of the customers.

Responsibilities of Advertisement and Product Management Committees

The panel will be required to report to the product management committee, which will be the final authority to approve or reject the advertisements, after examining the recommendations of the advertisement committee. The product management committee and advertisement committee shall be accountable and fully responsible for releasing the approved advertisements. The insurer’s product management committee needs to adhere to the record retention policy of the insurer and maintain data on all advertisements, or for a minimum of three years after the advertisement’s withdrawal date.

Importance of Advertisements in the Insurance Industry

Insurance advertisements are considered an integral part of the product-filing procedure. Currently, the acceptance of advertisements is based on approved applications of ‘File and Use’ and adherence to IRDAI regulations and circulars on advertisements. IRDAI has asked insurers to set up proper robust systems to upload advertisements on their website within three days of release.

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