With the regulatory dispute over unit-linked insurance plans (ULIPs) behind them, insurance companies are gearing up to launch new ULIPs.

Most insurers had put on hold new launches after the Securities and Exchange Board of India, asked them to take its permission before launching such products.

“Many investors will now go ahead and invest in ULIPs. Insurance companies that had put on hold new products will now bring them out,” said Mr Nageswara Rao, Managing Director and Chief Executive Officer, IDBI Fortis Life Insurance. “We are also working on some new products”.

Mr D.K Mehrotra, Managing Director, Life Insurance Corporation,. “We will be offering new ULIPs soon”.

Mr Kshitij Jain, Managing Director and CEO, ING Vysysa Life Insurance, said the controversy did not have any major impact on the business of life insurers, even though customers were concerned about the developments. Wait and watch

However, insurance companies are adopting a ‘wait and watch' approach before filing for new products with the regulator. “We will wait for a clearer picture to emerge on the proposed changes in the product structure of unit-linked plans before filing the product with the regulator”, Mr Mehrotra said.

“The regulator had never refused to accept applications for new products. We are working on some new products — both in the traditional and the ULIP space. However, we will wait for the regulator to bring about the changes before filing the products for approval”, said Mr Jain.

Insurance companies will now have to tighten their belts and focus on improving the productivity and controlling costs to protect bottom lines as the new proposed changes on surrender charges and introduction of life cover will put pressure on profitability, said an insurance company official

Ref :- web media