The Insurance Regulatory and Development Authority is taking longer than usual to process product proposals, leading to delay in launches and hindering business plans of insurance companies, industry experts said.

A product, which could be earlier launched within 30 days of seeking the regulator's approval, is now kept pending for 12-18 months. The delay in approval is due to heightened scrutiny and lack of manpower to process product proposals, said industry executives.

Under the Irda guideline, an insurance company can go ahead and launch a product within 30 days of filing the proposal, if there is no query or objection raised by the regulator.

"Companies are getting a query from the regulator on 29th day of filing, thus leading to delay in clearance," said an executive. Most of the products awaiting the regulator's nod are in the health space.

"Our business plan is delayed because product is not being approved. Our personal accident and mediclaim products are lying with the regulator for over a year," said a senior executive of a general insurance company, who did not wish to be named. "Turnaround time should be brought down.

This will encourage the industry to come up with innovative products as we do not know how long will it take for approval," said KG Krishnamoorthy Rao, managing director and chief executive officer, Future Generali General Insurance.

The company is awaiting clearance for 12 products, applications for which were filed over the past 18 months. Half of these products are in the health segment. The regulator has also formed a committee to evaluate health insurance products.

Industry experts said that the committee is necessary in the absence of the Member Actuary. The post has been lying vacant for the past four months.

"Before the panel was formed, Irda chairman would take a look at all health products in the absence of the Member Actuary," said an industry executive.