- Date : 10/05/2023
- Read: 3 mins
Are flashy insurance ads deceiving you? IRDAI is proposing tighter regulations to prevent false advertising. Learn how this impacts you and your coverage here!
- IRDAI proposes an amendment to tighten regulations for insurance advertisements
- Insurers must form an advertisement committee with members from actuarial, marketing and compliance functions
- The proposed amendment aims to promote transparency and prevent customers from being misled
- The product management committee will have the final authority to reject or approve advertisements
- In May 2022, IRDAI issued guidelines to prevent general insurers from publishing misleading ads
Are you tired of being misled by flashy insurance ads? The Insurance Regulatory and Development Authority of India (IRDAI) has heard your concerns and is taking action. In a move to tighten insurance advertisement regulations, IRDAI proposes that each insurer constitutes an advertisement committee with at least three members from the insurer's actuarial, marketing, and compliance functions. It means that senior management will be more responsible for designing and approving media campaigns for product promotion. If you're wondering how these changes will impact you and your insurance coverage, keep reading to find out.
What does IRDAI intend to do?
IRDAI is proposing an amendment to the 2021 insurance advertisements and disclosure directives. The proposed change would require each insurer to form an advertisement committee consisting of at least three members from the company's actuarial, marketing and compliance functions.
All stakeholders have been requested by IRDAI to submit their feedback, if any, on the proposed amendment in the regulations and draft circular in the given format by May 25, 2023.
How are the amendments going to help?
The proposed amendment aims to increase senior management's accountability in creating and approving customer advertisements. The new regulations will enhance transparency and accountability in promoting insurance products, preventing customers from being misled by false advertisements.
Proposed modus operandi for obtaining approval for advertisements
The advertisement committee will be accountable for reporting to the product management committee, which will have the final authority to reject or approve the advertisements after examining the recommendations of the advertisement committee.
The product management committee will be responsible for releasing the approved advertisements. It should maintain records of all advertisements for at least three years from the date of withdrawal of the advertisement, as per the record retention policy of the insurer. The draft also requires insurers to set up robust systems to upload advertisements on their website within three days of release. Insurance advertisements are considered an integral part of the product filing procedure, according to IRDAI.
The latest Insurance Regulatory and Development Authority of India (IRDAI) amendments will enhance transparency and accountability in insurance advertising, protecting consumers from deceptive claims. The senior management's augmented accountability will discourage companies from engaging in mis-selling practices, making it a positive step.