IRDAI asks insurers to review products annually & withdraw low-selling products

The CEOs of insurance companies have been asked by the IRDAI to review their products annually and discard policies that are poor-selling. Subhash Khuntia, Chairman, IRDAI, said, “I would like to encourage insurance companies to weed out products that are not selling and are simply adding to the number. If they do this, they will be able to manage their portfolio well.” In a meeting with the CEOs of the insurance companies, he said, “Through our actuary, we would be able to explain to the regulator why some products are still being sold.” He added, “Companies would choose products that are the lowermost in the sales portfolio and do not add any significant value to the industry.”