IRCSL issues new direction on sale of insurance products through MNOs and FLOs

Thursday, 24 October 2024 00:20 - - {{hitsCtrl.values.hits}}

The Insurance Regulatory Commission of Sri Lanka (IRCSL) said yesterday it has issued a new direction to ensure that the sale of insurance products through Mobile Network Operators (MNOs) and Fixed Line Operators (FLOs) is conducted with transparency, security, and in compliance with the highest industry standards for the protection of policyholders.

This direction will apply to all insurers and insurance brokers who utilise MNO and FLO platforms for marketing and selling insurance products. The direction emphasises the importance of protecting policyholders and prospective policyholders by regulating the processes involved in selling insurance products via mobile and fixed-line operators, ensuring transparency in product offerings, data protection, and streamlined claims procedures.

The new direction introduces key regulatory measures requiring insurers to obtain approval from the IRCSL for products marketed through MNO/FLO platforms. Insurers must also ensure transparency by providing clear and simplified product information, including details on claim procedures, dispute resolution mechanisms, and key policy features.

Further, insurers are required to clearly disclose the customer onboarding process, detailing what customers need to do to purchase an insurance policy. Additionally, strict data protection measures must be implemented to prevent breaches, in accordance with the Personal Data Protection Act, No. 9 of 2022. MNOs and FLOs are strictly not authorised to market or sell insurance products.

This new direction came into force from 22 August 2024. The IRCSL said a time period of four months from its effective date has been given to insurers and brokers with existing arrangements to comply with the new direction.

The IRCSL said the new direction reinforces its commitment to protecting policyholders and prospective policyholders and ensuring that the insurance sector operates with integrity and transparency.

For more information on the direction or to raise any concerns, policyholders are encouraged to visit the IRCSL website; www.ircsl.gov.lk.