Insurance regulator wants to increase regulation of insurance ads

8 May 2023 , 08:33 AM

The regulatory body Irdai is recommending tightening regulations for insurance ads by giving top management of insurers greater responsibility in creating and authorizing media campaigns for product promotion. In this regard, a change in the 2021 regulations on insurance ads and disclosure has been recommended by the Insurance Regulatory and Development Authority of India (Irdai).

According to the proposed amendment, each insurer will be required to establish an advertisement committee with at least three members who must come from the insurer’s marketing, actuarial, and compliance departments.

The exposure draft, on which Irdai has requested feedback from the stakeholders by May 25, stated that the amendment’s goal was to provide top management more authority when creating and authorizing commercials for consumer consumption.

According to the draft, the committee will have to report to the product management committee.

After considering the advertisement committee’s recommendations, it was further stated that the product management committee would have the last say about whether or not to approve the advertisements.

‘Product management committee and advertisement committee shall be accountable and fully responsible for releasing the approved advertisements,’ the draft stated.

The product management committee should make sure to keep track of all of the advertisements, according to the insurer’s record retention policy, or at least for three years following the date the advertisement was withdrawn, and should be available to the Irdai as needed.

Additionally, within three days of the draft’s release, insurers are required to set up reliable systems and submit adverts to their websites.

Insurance commercials, according to Irdai, are a crucial component of the product filing process.

The present process for accepting advertisements is based on compliance with Irdai advertisement laws and circulars and authorized ‘File and Use’ applications.

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