Curtains on highest NAV guarantee cover plans

In a move that may further dent sales of unit-linked life insurance plans (Ulips), the Insurance Regulatory and Development Authority (Irda) is set to scrap the highest Net Asset Value (NAV) guarantee products.

Highest NAV guarantee products accounted for a fifth of Ulip sales after pension plan sales dried up following the stringent norms on Ulips from September 2010. Under the highest NAV guarantee products, customers are guaranteed returns based on the highest NAV a policy has achieved during the entire term of the insurance plan.

According to insurance industry sources, the insurance regulator is wary of a “systemic risk” associated with the way the funds are managed. Such products lay more emphasis on debt instruments and run the risk of a heavy sell-off in equities in case of a stock market fall.

CHANGE OF COURSE

* Notification by month-end

* Irda not renewing any such products

* Irda won’t approve new schemes based on highest NAV guarantee

* Highest NAV products comprise 20% Ulip sales

* MF players not allowed to have such schemes

Leading private insurers like ICICI Prudential Life, HDFC Life, Bajaj Allianz Life and Birla Sun Life all have at least one such product still in the market, but it is very unlikely that any new ones would be launched. The insurance regulator is neither renewing any existing products nor approving any new products. The markets regulator, Securities and Exchange Board of India, does not allow mutual fund houses to sell such products. Life Insurance Corporation of India (LIC) had launched two products — Wealth Plus and Samridhi Plus — which ensured returns based on the highest NAV. However, both have been withdrawn.

The insurance regulator is not comfortable with the way these products are being pitched to customers. According to industry experts, these products are not expected to do as well as simple equity oriented schemes, since insurers tend to invest substantial amounts in debt.

In addition to these, insurers are also charging an additional “guarantee charge” in these products, which ranges between 0.10-0.50 per cent of the fund value.

Over the last one year, all major life insurance companies launched highest NAV guarantee products and some of the companies also came up with more than one version.

The Life Insurance Council is also examining the issue with insurance companies and is likely to take up the matter with the regulator.

Health insurers must update customers about list of hospitals

New Delhi: Health insurers offering cashless facility have been directed to keep their customers updated about any change in the list of hospitals as well as about alternative options in the vicinity, Parliament was informed on Friday.

Citing an IRDA report for 2008-09 and 2009-10, Minister of State for Finance Namo Narain Meena in a written reply informed the Lok Sabha that cashless basis of settlement is costing more for all type of diseases.

He was replying to a query whether the cashless health insurance facility was being misused by hospitals.

Meena further said to ensure that interest of policy holders is not adversely affected when the insurers make changes in their partner network of hospitals, directions have been issued to them.

"...It has directed all insurers... to inform the policyholders at all times, the nearest possible alternative hospitals, where the cashless facility is available and the conditions thereof," he added.

Insurance companies negotiate rates for certain medical procedures and normally include in the network only those hospitals, who have agreed to the rates.

Last year customers were left in a quandary following a deadlock between the four PSU insurers and major private hospitals over resumption of cashless facilities.

The four PSU insurers -- New India Assurance, United India Insurance, National Insurance and Oriental Insurance -- have suspended the cashless service at select hospitals from July 1, 2010, alleging over-billing by them.

Later on the Insurance Regulatory and Development Authority (IRDA) came out with a guideline asking insurers to constantly inform customers about the hospitals which offer cashless treatment.

http://zeenews.india.com/business/news/news_content.aspx?newscatid=3&newsid=29580

Life insurers can invest in VC funds

The insurance regulator has opened the doors for life companies to invest in venture capital funds - a move that is likely to result in VC funds making a beeline for the Life Insurance Corporation of India which will have a headroom of close to Rs 30,000 crore to invest in such funds.

Until now life insurers were allowed to invest in VC funds but it was subject to the condition that the investment would be predominantly in infrastructure . Insurers say that this will create new investment opportunities for them. "This is a positive move as it opens up new avenues for investments.

Although for most private companies the size of the traditional portfolio is relatively small, it is growing steadily and should be sizeable going ahead" said Puneet Nanda, ED, ICICI Prudential Life Insurance. In a circular , IRDA said it had received a lot of queries from insurers on whether their investment were restricted only to infrastructure .

"The IRDA after inviting coments and concerns of insures clarifies that ...insurers may invest in any venture fund registered under Sebi Regulaion, which includes VC funds investing in small and medium enterprises," the circular said. IRDA has however barred insurers from investing in funds promoted within the group or by an investment manager, who is indirectly controlled or managed by the insurer or promoters. Insurers also say that this will give companies to participate in promising business at an early stage.

"Today most private companies go for a round of private equity or venture capital funding before they get listed. By the time they go for a listing, it is at a significant premium," said the investment head of a private life company. Incidentally , all Sebi regulated private equity funds are registered as venture capital funds. While IRDA has widened the scope of venture funds, it has retained the investment limits. Overall investment in VC funds will continue to be a part of the 'other investments' of a life company, which stands capped at 15% of the life fund. The maximum that a life company can invest in a venture fund would be 3% of the life fund size.

http://timesofindia.indiatimes.com/business/india-business/Life-insurers-can-invest-in-VC-funds/articleshow/9843549.cms

India's biggest farm equipment maker Mahindra & Mahindra plans to venture into general insurance business

MUMBAI: Mahindra & Mahindra Group , the biggest farm equipment makers in the country, is planning to tie-up with an experienced company to venture into the Rs. 40,000-crore general insurance business, which is growing at around 20% a year. 

The group, which has a lending business in Mahindra & Mahindra Financial Services Ltd , has mandated consultants KPMG to find a partner who would have technical experience in running a general insurance business, including writing covers for industrial accidents and automobiles. 

The group is present in the insurance broking business through Mahindra Insurance Brokers . Magma is the last NBFC to enter into non-life space by manufacturing insurance products. 

Magma Fincorp and its associate company, Celica Developers , have formed a joint venture with German insurer, HDI-Gerling to foray into insurance. Another conglomerate L&T has started an insurance subsidiary last year. The general insurance arm of the company is a 100% owned subsidiary of L&T without a foreign partner. 

Mahindra will be the 24th non-life insurer in the industry. There are 23 non-life insurance companies, of which four are public sector insurers. The entry of new players could put pressure on premium rates. 

IRDA scraps profit rule for life insurance IPOs

The insurance regulator has scrapped the minimum three year profitability clause for life insurers to float initial public offerings, throwing a lifeline for many companies that would have struggled for capital. The Insurance Regulatory and Development Authority , or Irda, took the decision in a recent board meeting, two people familiar with the matter said. 

The decision to do away with the requirement, which was part of the draft guidelines for IPOs, follows lobbying by insurance firms that the absence of higher foreign investment and access to public funds could cripple their businesses. Valuing insurance companies in India may become tricky with some arguing they are at a growth stage and the market has huge potential. While insurers may look for high valuations due to market potential, their losses could be talked down as it happened in the case of dotcom companies. The insurance regulator had prescribed a minimum embedded value for which the insurers objected to and sought flexibility. 


SOURCE-http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/irda-scraps-profit-rule-for-life-insurance-ipos/articleshow/9131020.cms

Proposed new insurance norms may adversely impact mergers

India's insurance regulator may be attempting to override legal provisions while also seeking to prevent promoters from exiting ventures within 10 years of starting operations, experts feel. 

Their cause of concern is the recent draft guidelines issued by the Insurance Regulatory and Development Authority -- formally titled the IRDA (Issues of Capital and Disclosure Requirements for Life Insurance Companies) Regulations, 2011. The proposed regulations are to govern the initial public offering by life insurers or for dilution of stake by the promoters. The insurance regulator has called for comments and views on the draft regulations before finalising the same. "According to its apparent tenor, the proposed regulations would prevent promoters from exiting their venture or roping in new partners within 10 years of operations," said D. Varadarajan, a Supreme Court lawyer specialising in company and insurance laws. As per the draft regulations, promoters of life insurance companies can dilute or divest their holdings after 10 years of operations by: 
- issuing capital under the inter-corporate deposit regulations; 
- divesting equity through inter-corporate deposit regulations; and 

- issuing capital or divesting through other means.

The catch lies in the fact that under the proposed norms, the 10-year operations clause may become mandatory for insurance companies proposing to raise capital through a public issue under inter-corporate deposit norms, or if a promoter intends to reduce stake. Experts maintain while the Insurance Act does not bar insurers from going public within 10 years of operations, the regulator may interpret the new norms as though the 10-year operations clause is mandatory, which could hit their future plans to raise money. The Insurance Act has two sections on transfer of shares. Section 6A requires prior nod for transfer of stakes above five percent and Section 6AA deals with public issue or divestment by promoters after 10 years to bring down their holding to 26 percent. "Section 6A of the act expressly provides for transfer of shares when the shareholding is below five percent, without the permission of the regulator. Any transfer in excess of five percent requires the regulator's permission," an insurance expert said. But the draft regulations, if they come into force, may restrict any stake transfer during the first 10 years of operations. "The ambit of Section 6A is entirely different. For all purposes, a lock-in period of 10 years as proposed by the insurance regulator as per norms can't be stipulated here," Varadarajan told IANS. He further said Section 6AA comes into play only when insurance companies go for public issues or when promoters have to dilute their holdings after 10 years of operations. Industry officials conceded as prudent the licensing regulation that bans promoters from transferring or diluting their stakes during first five years of operations to ensure that only serious players enter the business.

IRDA defers health insurance portability launch to October 1

Insurance regulator IRDA has postponed the implementation of portability of health insurance products by three months to October 1. 

Portability will help an insurance policy holder to switch from one insurer to the other. The policy holder can carry the existing benefits from previous insurer. Insurers must have historical data on policyholders' health related details of claims to ensure that portability is available in a smooth manner to the policyholders, IRDA said. 

The regulator is setting up a web-enabled facility on which insurers can feed all relevant details on health insurance policies issued by them to individuals which will be accessed by the new company to which a policyholder wishes to port his policy. 

On Friday, chiefs of non-life insurance companies met IRDA Chairman J Hari Narayan to discuss issues related to the modalities of portability. Insurers conveyed that they need more time to process the policy. 

"There are some operational issues. Also we have conveyed that more time should be given to know the medical history of the policyholder," said the head of an insurance company who attended the meeting.

Third party premium rises by up to 70%

The Insurance Regulatory and Development Authority (Irda) has increased the third-party motor premium by up to 70% from April 25. 

The regulator had issued an exposure draft in January, suggesting an 80% increase on all third-party motor policy. Irda said that based on the concerns expressed by various stakeholders during discussions, premium for goods carrying and passenger carrying vehicles has been brought down by 15% and so the real change is 68%. 

In the draft circular, the regulator had suggested an increase of 85% for goods and passenger carrying vehicles. Similarly, private car and two wheeler premium is increased by 10%. The regulator said that the rates are revised at an interval of 4-5 year and such long intervals cast an avoidable strain on policyholders as well as on insurance companies. 

The new rates will be based on parameters, like average claims cost for each class of vehicle, frequency of claims for each class of vehicle and cost inflation index for the year of review. Insurers have made an excess provision of Rs 3,500 crore towards thirdparty motor pool. Insurers, however, are not allowed to cancel the current insurance policies and issue fresh policies to effect new premium rates. 

The regulator has asked companies to be mindful of the concerns expressed by vehicle owners about both the rates and availability of insurance. Moreover, the regulator said that it will treat any complaint of non-availability of insurance or use of methods to deny or delay the client seeking insurance cover, seriously.




http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/third-party-premium-rises-by-up-to-70/articleshow/8014194.cms

Non-life insurance like motor and health will gradually get costlier: Irda

The Insurance Regulatory and Development Authority (Irda) on Monday said that policy holders will gradually have to pay more for motor, health and other general insurance covers as costs would go up due to companies setting aside higher funds for claim settlements. "I think the demand and supply position in the non-life industry will be such that prices should harden and I expect to see evidence of that in the course of next few years. And I would like to make it even harder as we go along," Irda Chairman J Harinarayan said.

Harinarayan, who was speaking at the 'Ficci National Conference on Insurance', said the non-life insurance companies would need to bring in changes in marketing, pricing and modes of claim settlement to become profitable. "Because of the requirement of increase in provisioning, there will be a reduction in capacity and because of that there will be a hardening of prices," Harinarayan added.

Irda has already proposed to increase provisioning requirement for insurers providing motor insurance covers. Irda had increased the provisions made for motor pool to 153 per cent of book value for the four years till March 31, 2010, against 126 per cent maintained by companies.This is aimed at enhancing solvency margins and make higher provisioning for third-party motor pool.

Solvency margin is the minimum surplus on the insurer's assets over liability set by the regulator and the insurance companies are estimated to have provided about Rs 3,500 crore till March 31, 2010, for maintaining this margin.

Harinarayan said in the next three years the insurance companies will see changes in distribution set up, marketing techniques, channels of distribution and also terms of regulatory development. "The agency model that we see right now has serious deficiencies and that requires to be strengthened. I do not think the agency distribution model is going to last very long," he said.

He said agency model in the traditional form has vanished in large markets across the world. "...I do not see why India will be any exception to that particular development," the Irda chief added. He said even as the market widens, "it is not going to go down to the poorest of poor". "The total size of the market we are looking at (for insurance penetration) may be 500-600 million in terms of kind of product we have to offer," Harinaryan said.Going forward in general insurance space, he said, the health and annuity or pension-linked insurance products will gain predominance.

IRDA Draft Guidelines Will Limit Indian Web Insurance Aggregators

India’s insurance regulator IRDA is now looking to regulate online insurance aggregators, and, through the insurance companies it regulates, define the terms under which web based insurance aggregators operate, including the business model and renumeration, and will force the industry to switch from a cost-per-lead model to a cost-per-sale model. Some provisions we culled out from the draft guidelines for web based insurance aggregators and insurance companies in India, followed by our comments:

1. Only Approved Web Aggregators: Only IRDA approved web aggregators can generate insurance related leads for insurance companies. The IRDA shall grant approval for a period of three years to the web aggregator. The Authority may appoint one or more of its officers as an inspecting authority to undertake inspection of the premises of the web aggregator to ascertain and see how activities are carried on, and also to inspect the books of account, records

2. Minimum Net Worth: The web aggregator shall have a minimum net worth of not less than rupees fifty lakhs at any time during the previous three consecutive years. 3. At no point of time of its functioning, a web aggregator shall have net worth below rupees fifty lakhs.

3. Deal terms: Insurer/Broker shall enter into an “agreement” with the web aggregator approved by the authority which shall necessarily include details relating to, among other things, the Fee/Remuneration for the leads to be shared. The agreement shall be valid for a period of three years from the date of grant of approval by the Authority.

4. Lead Limits: If the client evinces interest in buying insurance but does select an Insurer, then the lead may be transmitted to no more than five Insurers in the same class of insurance business, or to more than one Broker. The same lead cannot be shared with both. Web aggregator shall transmit the data of clients to Insurer/Broker within five days of the client’s visit to the web site.

5. Payment terms: No advance payments. Payments shall be made to web aggregators only towards such leads that result in the sale of a policy. The fee for the lead shall not exceed twenty five percent of the commission payable on the first year premium sold on the basis of the lead obtained from the web aggregator. The Broker shall pay a fee not more than twenty five percent of the Brokerage receivable on the first year premium sold on the basis of the lead obtained from the web aggregator. The insurer/broker shall not pay any fees for renewal, or towards incidental web aggregator costs such as maintenance of the data base, infrastructure, training, entertainment, development, communication, advertisements, sales promotion etc.

Source: Medianama

India’s Insurance Regulators Issue New Norms.

The Insurance Regulatory and Development Authority, India’s insurance industry regulator, issued new rules that relaxed solvency ratios for India’s general insurers, the Financial Express newspaper reported, citing M. Ramadoss, the chairman and managing director of New India Assurance. Under the rules, the solvency ratio for general insurers has been reduced for March 2011 to 130 percent from 150 percent, the report said. The newspaper also cited the regulator as saying that general insurers wouldn’t be allowed to pay any bonus, dividend and other incentives unless they maintained a solvency ratio of 150 percent.



IRDA releases norms for merger of general insurance cos.

More than 10 years after opening up of the insurance sector, regulator Irda today proposed to allow mergers and acquisitions in the general insurance business that requires consolidation among the 24 industry players, most of which are loss-making. To protect the interest of policyholders, they must be given right to exit from the insurer, which is on the block for acquisition, Irda said in its draft guidelines.

"The transacting parties shall ensure that policyholders of the transferor entity are migrated in a manner which ensures that their existing policies are continued to be serviced by the transferee entity on terms and conditions no less favourable than those existing prior to the merger," Irda said. An acquirer will need approvals from Irda, the Reserve Bank and the finance ministry, in case it has foreign direct investment. Most of the 22 players in the private sector have foreign investment, which is capped at 26 per cent. Irda has also said that the intent of the acquirer should be clearly spelt out. The regulator has retained with itself the power to vet the valuations arrived at by the companies involved in M&As.

"The Authority reserves the right to appoint an independent actuarial consultant to carry out actuarial valuation of the insurance business of the proposed transacting parties, the guidelines said. According to industry players, most of the private sector general insurance companies require fresh infusion of capital which may come from foreign partners, who have been constrained by the FDI cap. The Bill to raise the FDI ceiling is pending in Parliament. The general insurance business has remained loss making for want of capital, which is constrained due cap on foreign capital infusion.

"There are as many players in the general insurance space as in other markets. This guideline will play a part as the industry matures. The industry has been there for 10 years and this would give opportunity for old players," Sanjay Datta, head of health at ICICI Lombard General Insurance said. Irda has invited comments on the draft exposure guidelines by February 22. At present, the Insurance Act provides for the M&As only for life insurance companies. The fast growing general insurance space has many entities looking for M&A opportunities. There have been reports of Reliance General Insurance looking to buy majority stake in its rival Royal Sundaram.

source: http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/irda-releases-norms-for-merger-of-general-insurance-cos/articleshow/7477713.cms

‘Irda’s new guidelines have slowed down business tremendously’

Kamalji Sahay, CEO, Star Union Dai-Ichi, speaks to DNA about how insurance will always remain a push product.

http://www.dnaindia.com/money/interview_irdas-new-guidelines-have-slowed-down-business-tremendously_1506102

Health insurance policy portability from July 1

In a big relief to dissatisfied health insurance policyholders, Insurance Regulatory and Development Authority (IRDA) on Thursday allowed them portability — shifting policies from one insurer to another on same terms — from July 1.

“The authority has examined various issues involved in the portability of the health insurance plan and has issued the necessary orders for effecting portability which will be implemented from July 1,” IRDA says in a statement. The portability facility will allow policyholders to switch over to another insurance company with the same conditions.

“The accepting insurer shall provide cover, at least up to the sum assured in the previous insurance policy,” the regulator said. The new facility will help those policy holders who stick to one insurer throughout life for fear of losing the cover for Pre Existing Diseases (PED).

http://www.hindu.com/2011/02/11/stories/2011021160362000.htm

Irda scans pension liabilities of life insurance companies

After a notional loss of Rs 1,400 crore was reported in three pension schemes of the country’s largest insurance company, Life Insurance Corporation of India (LIC), the Insurance Regulatory and Development Authority (Irda) has examined the pension liabilities of all life insurance companies. “We want to ensure that life insurance companies have provided enough resources to take care of their long-term liabilities. So, we investigated pension liabilities of all insurance companies,” said a senior Irda official. However, the regulator found that all insurers had provided enough resources for their pension products.

P Nandagopal, CEO, Reliance Life, said it was a usual inspection, as India First Life Insurance had been in the business for one year and did not have long-term liabilities.

Generally, Irda examines investments of insurance companies every year. It is a week-long procedure. A five-six member team from Irda visits companies and carries out the inspection. LIC had formed a sub-committee after the deficit was reported. The three-member panel has finalised the report and may submit it any time.

“The sub-committee will submit the report to the chairman. It will also be made available to various departments such as audit, investment, etc,” said a senior LIC executive. The losses had occurred in three guaranteed-return annuity policies — Jeevan Dhara, Jeevan Suraksha and Jeevan Akshay — launched in 1980 and 1990 with an assured return of 11-12 per cent. Irda had clarified that it was a notional loss.

New guidelines hit ULIP sales

THE recently issued guidelines to regulate the unit linked insurance policies (ULIPs) are expected to slowdown its sales and impact the overall insurance sector’s growth during the current financial year 2010-11, according to Insurance Regulatory and Development Authority (IRDA).

The industry grew at about 23 per cent during the financial year 2009-10.

ULIPs contribute about 80 per cent of the total premium collections made by private insurance firms. According to the data compiled by IRDA, first-year premium income of life insurance companies fell 20.4 per cent on year to `97.09 billion in December, 2010. While private life insurance companies’ collections fell 21.7 per cent, public sector Life Insurance Corporation of India’s collections declined 19.7 per cent.

First year premium collections indicate the quantum of new business generated by hte insurance companies. In September, 2010 the insurance regulator issued guidelines and asked private players to redesign products besides reducing costs.

Another year before insurance cos stabilise: Irda

The growth rate of insurance companies may come down this fiscal and it will take a year before they stabilise, the Insurance Regulatory and Development Authority (Irda) said today. Irda Chairman J Hari Narayan stated this when asked about the impact of new Ulip norms announced by the regulator last year. The new norms came in to affect from September 1, 2010.

He said growth may be affected not only due to the developments within the industry but also overall economy. Insurance companies are of the opinion that certain provisions of new ULIP norms like capping of surrender charges and the even distribution of charges over the lock-in period of five years will adversely impact the profitability of companies. Ulip sales will also be adversely affected as agents may be unwilling to sell products at lower commissions.

Replying to a question, the regulator said the insurance companies expressed concern over norms

on pension products. He said the draft guidelines of IPO norms for life insurance companies will be issued next month and refused to divulge further details.

Irda set to allow standalone claim consultants

The insurance regulator Irda has decided to allow standalone claim consultancy in the industry.

Confirming the development Bharat Boda, president Insurance Brokers’ Association of India (IBAI) said “Irda has acceded to IBAI’s request for standalone claim consultants. A notification in this regard will be issued by the regulator soon.”Claim servicing requires a professional approach and in the absence of which the insured people aredeprived of the real customer service and insurance industry receives bad name.

Complicated claims for which existing intermediaries like brokers or agents may not be able to provide

expert advisory services can now involve stand alone claim consultant said Boda.

In another significant development, Irda stated that soon the Know Your Customer (KYC) scheme would

also be launched for non-life products and beyond a certain amount the premium will only be accepted in the form of cheque.

The KYC scheme enjoins upon the insurer to get PAN No. details of the insured ones.

Irda is positively inclined for the training needs of brokers on various aspects of industry through online

training programme.

“Irda has in-principle approved our proposal but with a caveat that they would consider only such training programmes proposed to be conducted by IBAI in respect of which prior approval of IRDA has been obtained. IBAI is currently in dialogue with Insurance Institute of India to devise such courses”, said Boda.

Boda also suggested that licensed brokers should be permitted to appoint sub-brokers to penetrate large

potential market.

“The reason for promoting sub-broking is for penetrating into the rural market to tap business potential.Irda having considered relaxation in cases of India Post and micro insurance agents should allow , subbroking as it is essential for providing adequate service to clients by broking community”.

The IBAI has also asked Irda make IBAI as a self regulatory body for putting in place the system and processes for issuing licenses to new applicants, renewals and also for taking disciplinary action

http://www.financialexpress.com/news/irda-set-to-allow-standalone-claimconsultants/737583/0

Only 10-year-old life cos can tap markets

 The insurance regulator may have decided to announce guidelines for equity issues by life insurance companies early next month, but companies which are not yet 10 years old will not be able to approach primary markets.

However, companies that are in existence for 10 years, but have not registered net profits for the past three consecutive years, will be able to do so through the book-building process, Irda chairman J Hari Narayan told ET.

Companies like Reliance Life Insurance and HDFC Life Insurance have expressed their intention of approaching the primary markets for raising additional funds.Given the 10-year stipulation for IPO, Reliance Life will have to wait for another year.

Reliance Life had approached the finance ministry some two years ago for allowing it to raise funds from primary markets . It wanted the ministry’s permission to skip the 10-year stipulation. Irda, it seems, is not too comfortable with the idea.

Technically, insurers will be able to approach the markets once the guidelines for equity issues by life insurance companies are out. “We hope to provide the guidelines in the next 2-3 weeks,” said Mr Narayan .

Source: http://economictimes.indiatimes.com/

Insurance companies' IPOs next fiscal as IRDA gives final touches to equity norms.

Insurance companies will be able to raise funds through public floats next fiscal with the insurance watchdog set to announce guidelines for equity issues by life insurance companies early next month.The regulator said it was still in the process of making a formal proposal to the market regulator, Securities and Exchange Board of India (SEBI), for allowing non-life insurers to issue shares to public.

In October last year, market regulator Sebi had allowed life insurance companies to issue public offers. According to the draft guidelines compiled by the regulator, only those insurance companies that are in operation for the last 10 years will be eligible for coming out with public offers.

The regulator is also working on the draft regulation for covering nuclear accidents. "We are in early stages. This involves large amount of risks. We will have to first constitute a pool, which will be part of the larger global pool (of nuclear accident insurance). That is yet to be figured out," Mr Narayan said. State-run reinsurer General Insurance Corporation (GIC) is working on the details to provide insurance protection against such accidents.

Private sector insurers such as Reliance Life and HDFC Standard Life have evinced interest in tapping the capital markets. Most of the 22 private life insurers and 17 non-life players have foreign partners. The Insurance Act caps foreign direct investment at 26%. According to Sebi, insurance companies in their offer document would have to mention a glossary of terms used in the insurance sector. The insurers will also have to come up with disclosure of risk factors specific to the companies.

Source:

http://economictimes.indiatimes.com