The Insurance Regulatory and Development Authority of India (IRDAI) is proposing to tighten norms for insurance advertisements by assigning higher responsibility on the senior management of insurers in designing and approving media campaigns, for product promotion.
In this context, the regulatory has proposed an amendment to the 2021 directives on insurance advertisements and disclosure.
Under the proposed amendment, each insurer will be required to constitute an advertisement committee comprising at least three members mandatorily from marketing, actuarial and compliance functions of the insurer.
Assigning responsibility
"The objective of the amendment is to assign higher responsibility on the senior management while designing and approving the advertisements for the consumption of the customers," said the exposure draft on which IRDAI had invited comments from the stakeholders by May 25.
The panel will be required to report to the product management committee, the draft said.
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It further said the product management committee would be the final authority either to approve or reject the advertisements, after examining the recommendations of the advertisement committee.
"Product management committee and advertisement committee shall be accountable and fully responsible for releasing the approved advertisements," the draft said.
The product management committee, it added, should ensure to maintain data on all advertisements, as per the record retention policy of the insurer, or at least for three years from the date of withdrawal of the advertisement, and must be made available to the IRDAI as and when called for.
Insurance advertisements integral
The draft also asked insurers to set up proper robust systems to upload advertisements on their website, within three days of release.
IRDAI said insurance advertisements are considered to be an integral part of product-filing procedure.
The procedure for accepting the advertisements is currently based on the approved 'File and Use' applications and compliance to IRDAI advertisement regulations and circulars.
