IRDAI reforms to increase transparency, enhance policyholder experience

financialexpress.com:

The Insurance Regulatory and Development Authority of India (IRDAI) has announced comprehensive reforms aimed at enhancing the overall customer experience in the life insurance sector. Detailed in the newly-released Master Circular on Life Insurance Products, these reforms focus on increasing transparency, accessibility, and policyholder satisfaction.

One of the most significant changes is the simplification of the Customer Information Sheet (CIS). This updated CIS format presents complex policy details in clear, understandable language, ensuring that customers can fully comprehend their policy benefits, exclusions, and other critical information. This initiative is expected to lead to more informed decision-making and higher customer satisfaction.

Additionally, the IRDAI has extended the free look period, allowing policyholders more time to review and potentially cancel their policy without penalty. This extension provides customers with a greater opportunity to assess whether their policy meets their needs and expectations, reducing the pressure to make immediate decisions.

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The introduction of variable annuities is another key reform. These products offer policyholders greater flexibility in managing their retirement funds, with payouts that can adjust based on market conditions. This tailored approach to retirement planning is designed to better meet individual financial goals.

To ensure high standards of service, the IRDAI mandates regular and comprehensive training programs for intermediaries, distribution channels, and insurance company employees. This ensures that all representatives are well-versed in product details,