The IUP Journal of Law Review
Insurance Product Designing:
An Analysis of Regulatory Guidelines

Article Details
Pub. Date : April, 2019
Product Name : The IUP Law Review
Product Type : Article
Product Code : IUPLR21904
Author Name : Veena
Availability : YES
Subject/Domain : Law
Download Format : PDF Format
No. of Pages : 12



The concept of insurance has been prevalent in India since ancient times and has a great social significance. Insurance contributes to the economic growth of a nation, and it has evolved as a process to safeguard the interests of people from loss and uncertainty, and plays a major role in reducing the risk of loss of life and property. In today's competitive market the insurance companies design and market various insurance products to cater to the changing needs of people, business and industry. In the process, they have to design insurance products which have market viability and also capture the attention of the people, where security is the prime motivating factor. While insurance companies design and price the product, IRDA, a regulatory body regulates the same. Without IRDA's prior approval, no new policies could be launched or priced by the insurance companies. Marketing of insurance products is more complex in the present scenario, and products are regulated by a three-tier model-designing, pricing and marketing. The present paper deals with these phases along with the latest IRDA regulations pertaining to the insurance products and pricing. It further discusses the enormous efforts and challenges faced by insurance companies in planning and designing insurance products in the country and the major role played by IRDA in protecting the interests of the insurance policy holders.


A well-designed insurance product is a milestone for insurance companies, paving the way for business success. It is the most critical and important step in designing a business plan and creating a blueprint for the growth of the company. The pricing of the product also depends on various factors, including the risks covered by the product and the terms and conditions of the insurance product. As such, more attention is required to be paid to insurance product design.