Nearly a year after the final listing guidelines were issued for life insurance players, none of the 10-odd insurers who are eligible for public float have got listed so far and now IRDA is issuing norms for non-life players
Mumbai: Insurance Regulatory and Development Authority (IRDA) chairman J Hari Narayan on Monday said the authority will issue the draft public float guidelines for general insurance companies within a week, reports PTI.
“All things have been finalised and we may come out with the initial public offering (IPO) norms for general insurers in another week,” the IRDA chairman said at an industry meet organised by CII in Mumbai.
Earlier, market regulator Securities and Exchange Board of India (SEBI) had approved the draft IPO draft guidelines for non-life insurance companies.
However, it can be noted that nearly a year after the final listing guidelines were issued for life players, none of the 10-odd players who are eligible for public float have got listed so far.
On the draft guidelines for life product designs, Mr Hari Narayan said, “We will come out with the draft on life products design by the end of the month.”
IRDA also released the exposure draft on investment norms relating to swaps, hedging and equity exposure for the industry players.
However, he did not give a timeline saying the regulator is working on exposure draft for senior agents, but cannot give a time-line for it.
Going forward, protection and annuity provisions will be the two important areas of focus for the life insurance companies.
Talking about lesser availability of annuity plans, he said at present Life Insurance Corporation of India (LIC) is the major player in the segment, amounting to high concentration risk.
“The regulator cannot think of only of one annuity player in the market, which increases the concentration of risks. So insurance companies have to think about it,” he said.
Mr Hari Narayan further said it will also come up with exposure draft on risk weight solvency in the near future.
“We are taking some baby-steps in risk weight solvency, which will be in line with the Reserve Bank of India (RBI) guidelines,” he said.
When asked about norms on e-insurance, he said, the repository has already been selected and it will be in place shortly.
Talking on the whistleblower policy, he said, the regulator is thinking about coming up a policy on this front in line with the RBI.
Pulling up insurance companies for rushing in to launch new products, he said, they should instead concentrate on existing products that are in demand.