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EXCLUSIVE
INSURERS BULLISH ON UBI IN INDIA, EXPECT LARGER ADOPTION OF 'PAY AS YOU DRIVE'
As expected by the Insurance companies, majorly the younger car owners from
metro cities have shown significant early interest towards the Pay As You Drive
product. Being a pocket friendly option and with the influx of hybrid work
cultures, insurers are bullish that PAYD is set for major uptake. Here's what
they said.
* Sheersh Kapoor
* ETBFSI
* September 12, 2022, 08:00 IST
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According to media reports, over 30% of car owners in India do not opt for
insurance, however, this is soon expected to change with the advent of
User-based Insurance (UBI) which offers more affordable & reasonable options to
the customers.
While UBI is still in its early days worldwide, more people have now started to
consider it against standard options post Covid 19, mainly because of its pocket
friendliness and the influx of hybrid work cultures.
"Pay as you drive is expected to see good traction in the Indian market
specially post Covid. Lot of the users are either working from home or not using
their car much. In that case, pay as you drive offers a very economical option
for these users," said ACKO’s Senior Director – Motor Underwriting, Animesh Das.
As expected, majorly the younger car owners between the age group of 25 years to
35 years & metro cities have seen significant early adoptions, he added.
Insurers also believe that Pay as you drive concept will appeal to the value
conscious, Indian mindset.
'People are now beginning to realise that they can save on their insurance
premiums if they drive less. This realisation will gradually drive adoption for
these new concepts in India," said Pooja Yadav, Chief Product Officer, Edelweiss
General Insurance.
The response has been very good and the comp has been receiving a lot of inbound
queries to know more about the product. PAYD is now becoming more mainstream
with the introduction of the Usage Based Motor Insurance guidelines by IRDAI,
she added.
Regulatory Sandbox
PAYD / PHYD was first introduced as part of IRDAI’s sandbox initiative in 2019,
with premiums linked to mileage and quality of driving.
While Insurers have tried offering PAYD as an option under the IRDAI sandbox
earlier as well, the experiment saw limited adoption, because of restrictions.
Subhasish Mazumder, National Head – Motor Business, Bajaj Allianz General
Insurance said, "With the new data privacy policy coupled with the benefits of
adopting this product, we foresee an optimistic outlook for this product.
Moreover, there will be some added benefits to the customer beyond pricing like
avoidance of theft loss, Geo-fencing, quick availability of post claim services,
etc."
Possible Challenges
Although PAYD is gaining the attention of the consumer market, Piyush Ranjan,
CTO, Coverstack (Coverfox Group) feels the economics of the same has to align
for this product to succeed in the market.
"It will be interesting to see how the insurers equip an insured vehicle with
telematic devices to track the distance driven. There are insurers which provide
this discount basis the end of the year car video upload by the customer which
is also cumbersome and open to multiple fraud scenarios," he said.
It must be noted that the cost of installing the telematics device to is not
justified as OD premiums are significantly lower in our country compared to
western world where such devices lead to a significant discount, he added.
Growth of UBI in India
The outlook remains positive specially in certain segments of customers. As more
insurers bring out pay as you drive products and consumer knowledge about the
product offerings increases, we may see a higher offtake, said Tarun Mathur, CBO
– General Insurance, Policybazaar.com.
While the Pay as you consume model is already being widely used in many
developed countries, it is a relatively new concept in India.
"We see some companies going in to file PAYD/ HYD as regular filed plans but
since the product is recently launched, more information would come out with
time and we may get larger adoption. More insurers will take out their own plans
with their unique features which will also benefit the customers at large," he
added.
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INSURANCE
* 2 hrs ago
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* 2 days ago
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EXCLUSIVE
INSURANCE INDUSTRY WILL CONTINUE TO SEE M&A DEALS, NEW ENTRANTS
The past developments in this sector and recent decision of the Mumbai National
Company Law Tribunal (NCLT) allowing merger of Exide Life Insurance with HDFC
Life is an indication that entities without requisite expertise may quit the
sector.
* PTI
Click Here to Read This Story
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Merger and acquisitions will continue to be a part and parcel of the insurance
sector, which is a highly capital intensive sector and can accommodate new
entrants with specialised skill sets having long-term vision.
The past developments in this sector and recent decision of the Mumbai National
Company Law Tribunal (NCLT) allowing merger of Exide Life Insurance with HDFC
Life is an indication that entities without requisite expertise may quit the
sector.
In order to equip itself with the complexities of merger and acquisitions, the
Insurance Regulatory and Development Authority of India (IRDAI) has started
looking for consultants who can undertake valuation of state-owned and private
sector insurers, and train its officials about valuation methodology and
processes.
Market players and analysts are of the view that the sector has significant
potential for development and there will be new entrants in the insurance
industry and also Merger and acquisition (M&A) deals.
"The sector, like others, has witnessed some merger and acquisitions in the past
and will continue to witness them and newer opportunities will emerge in the
future.
"Players with sound underwriting practices, strong financials and right
management practices will continue to grow in the long-run," said Anand Pejawar,
Deputy Managing Director, SBI General Insurance.
Pejawar further said India's insurance landscape is vast and there is immense
scope and enough volume for players to co-exist. Given the scope for growth in
the sector, both large and niche players can continue to operate in the market.
Currently there are 24 life insurance companies and 31 non-life or general
insurance firms, including specialised players like the Agriculture Insurance
Company of India Ltd and ECGC Limited.
There have been consolidation in the insurance space in the recent past --
Bharti AXA General Insurance merger with ICICI Lombard General Insurance was
completed in September 2021 and HDFC Ergo acquired Apollo Munich Health
Insurance Company in 2020. In 2016, HDFC Ergo General Insurance acquired a 49
per cent stake from L&T in L&T General Insurance.
Avinash Singh, analyst with Emkay Global Financial Services said "... given the
advantage from economies of scale, in all possibility, the top 10 players in
life and general will command 90 per cent or more of the profit pool".
Experts were of the view that the main requirement in both life and general
insurance is to bring in more capital and invest the capital into developing the
business.
"M&A, while useful in building scale does not necessarily bring more capital to
the business. So, I think there is the opportunity for many more insurers to
enter, as opposed to a consolidation that is implied in an M&A," said Kapil
Mehta, Co-founder, SecureNow.
Economies of scale are important but that can also be achieved by business
growth rather than just M&A, Mehta added.
Pavanjit Singh Dhingra, Joint Managing Director, Prudent Insurance Brokers said
"there will be new entrants and there will be M&A - it is a natural process."
Insurance companies are also collaborating with insurtechs to provide innovative
solutions and deliver a unified experience throughout the customer journey from
distribution, service, to claims.
Shailaja Lall, Partner, Shardul Amarchand Managladas & Co said the insurance
sector is highly capital intensive and there is going to be continued investment
activity in the insurance sector, especially with respect to insurtech
companies, led by private equity funds.
"In the recent past, several promoters of insurers have completely or partially
exited their insurance ventures to focus on their core business, including the
recent exit of Exide Life Insurance's promoters from its insurance business, and
the subsequent merger of Exide Life with HDFC Life Insurance which recently
received approval from the NCLT," Lall said.
Insurance penetration in India increased from 3.76 per cent in 2019-20 to 4.20
per cent in 2020-21, registering a growth of 11.70 per cent.
Last year, the government brought an amendment in the Insurance Act to allow
increasing foreign holdings in insurers from 49 per cent to 74 per cent.
Besides, Parliament passed the General Insurance Business (Nationalisation)
Amendment Bill, 2021, allowing the central government to pare stake to less than
51 per cent of the equity capital in a specified insurer, paving the way for
privatisation.
According to a study, India is likely to become the sixth largest insurance
market in the world in the next 10 years, supported by regulatory push and rapid
economic expansion.
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EXCLUSIVE
OBESITY IS NO GROUND TO DENY MEDICAL INSURANCE CLAIM: BENGALURU CONSUMER COURT
Obesity is not a criterion to deny medical insurance claim, a Bengaluru consumer
court held after hearing a plea pertaining to an insurance company denying
reimbursement of bariatric treatment and surgery cost to a woman citing that it
was a case of 'morbid obesity'.
* Petlee Peter
* TNN
Click Here to Read This Story
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BENGALURU: Obesity is not a criterion to deny medical insurance claim, a
Bengaluru consumer court held after hearing a plea pertaining to an insurance
company denying reimbursement of bariatric treatment and surgery cost to a woman
citing that it was a case of 'morbid obesity'.
The court ordered the insurer to pay Rs 3.2 lakh towards the woman's treatment
with interest, apart from Rs 40,000 as compensation for causing trouble to her.
A 59-year-old Cubbonpet resident opted for the Optima Restore Floater Policy of
HDFC ERGO General Insurance Company by paying an annual premium of Rs 28,620.
Offering medical coverage from April 26, 2020 to April 25, 2021, he took the
policy to cover his wife, son and himself.
On April 7, 2021, his wife was admitted to Tulip's Obesity and Diabetes Surgery
Centre in Bengaluru due to ill-health and doctors advised her to immediately
undergo laparoscopic Roux-en-Y gastric bypass with umbilical hernia.
The man applied to HDFC ERGO insurance for a cashless claim for the surgical
procedure, but the same was rejected. However, his wife's surgery was completed
at a cost of Rs 3.2 lakh and an additional Rs 1 lakh was spent on other hospital
expenses.
On April 21, 2021, the man raised a claim for medical reimbursement but it was
rejected again by the company on the ground that it was for 'morbid obesity' and
as per terms and conditions of the policy, the same is not covered.
The husband explained to the firm the guidelines of Insurance Regulatory and
Development Authority (IRDAI) approving bariatric and metabolic surgeries. He
pointed out that such claims were being honoured from October 1, 2019 in a few
conditions, including the surgery being advised by a qualified doctor and
supported by clinical protocol and the patient being 18 years of age or older
with body mass index (BMI) greater than or equal to 40. The above stipulations
were applicable to his wife, the man said.
But with the insurer still pressing on the obesity factor, the man approached
the Bengaluru Rural and Urban 1st additional district consumer disputes
redressal forum in Shantinagar with a complaint against HDFC ERGO General
Insurance Company Ltd.
In the court proceedings that commenced on October 30, 2021, the Cubbonpet
resident presented his wife's case through a lawyer, while the attorney of the
insurance firm stated that the customer failed to furnish the correct policy
number to receive the money claim.
In their verdict pronounced on August 25, 2022, judges of the Bengaluru consumer
forum slammed the insurance company for failing to abide by IRDAI guidelines,
which clearly state that treatment for obesity is covered under medical
insurance. The court refused to buy the contention that the complainant had not
furnished the insurance policy details, and noted that the repudiation over
'morbid obesity' is indeed deficiency in service on the part of the insurer.
The court ruled that the insurance company must reimburse the family Rs 3.2 lakh
with interest towards the woman's bariatric treatment. It further directed the
company to pay Rs 25,000 as compensation and Rs 15,000 towards litigation
expenses of the complainant, all within 30 days of the order.
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EXCLUSIVE
NCLT APPROVES MERGER OF EXIDE LIFE WITH HDFC LIFE
New Delhi, Sep 16 (PTI) The National Company Law Tribunal (NCLT) on Friday
approved the merger of Exide Life Insurance with HDFC Life Insurance. The Scheme
of Amalgamation was approved by the Mumbai bench of NCLT, HDFC Life Insurance
said in a regulatory filing.
* PTI
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New Delhi, Sep 16 (PTI) The National Company Law Tribunal (NCLT) on Friday
approved the merger of Exide Life Insurance with HDFC Life Insurance. The Scheme
of Amalgamation was approved by the Mumbai bench of NCLT, HDFC Life Insurance
said in a regulatory filing.
Earlier this year, HDFC Life had announced acquisition of 100 per cent stake in
Exide Life from its parent Exide Industries after issuing over 8.7 crore shares
at an issue price of Rs 685 and a cash payout of Rs 726 crore, aggregating to Rs
6,687 crore.
Exide Industries now holds 4.1 per cent stake in HDFC Life.
The Scheme of Amalgamation is subject to the final approval of the Insurance
Regulatory and Development Authority of India (IRDAI), it added.
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EXCLUSIVE
SHARE EY'S REJIG REPORT, DEMANDS PSU NON-LIFE INSURANCE UNIONS
The employee unions in the public sector general insurance companies have
reiterated their demand for a copy of the Ernst & Young (EY) report on the
restructuring of the four companies.
* IANS
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Chennai, The employee unions in the public sector general insurance companies
have reiterated their demand for a copy of the Ernst & Young (EY) report on the
restructuring of the four companies.
The companies are: The Oriental Insurance Company Limited, National Insurance
Company Limited, The New India Assurance Company Limited and United India
Insurance Company Limited.
According to Girish Khurana National Convener, Joint Forum of Trade Unions and
Associations (JFTU), the unions got only the powerpoint presentation from
General Insurers' (Public Sector) Association of India (GIPSA) and not the full
EY's report.
"Bullet points contained in PPT (powerpoint presentation) reveal no details and
we are unable to submit our view-points and suggestions in the matter," Khurana
said in a letter to Suchita Gupta, Chairperson GIPSA and Chairman-cum-Managing
Director, National Insurance.
"In the meanwhile, we find that the Companies are going ahead with their action
plan implementation in haste without taking the workforce into confidence on
these vital issues. Our Management must appreciate the benefits of consensus and
collective prudence rather than unilateral decisions," he said.
The employees are agitated as the National Insurance has started implementing
the key performance indicator (KPI) norms.
On Thursday, employees of National Insurance held a demonstration against the
implementation of KPIs.
"You will kindly appreciate that such unilateral decisions are bound to vitiate
the IR environment and may prove to be counter-productive," Khurana told Gupta.
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EXCLUSIVE
STEP TOWARDS EASE OF DOING BUSINESS: IRDAI REDUCES NUMBER OF RETURNS TO BE FILED
BY INSURERS
The insurance regulator is carrying out a series of reforms in the sector to
promote ease of doing business for the insurers. To further reduce the
compliance burden for all the regulated entities, IRDAI has now reduced the
number of returns to be filed by insurers for health insurance.
* Sheersh Kapoor
* ETBFSI
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With a view of easing compliance burden for health insurers, Insurance
Regulatory and Development Authority of India rationalised health insurance
business returns reporting norm by reducing the number of returns that need to
be filed in a year.
This is yet another move towards promoting ease of doing business for insurance
companies by the regulator which will further reduce the compliance burden for
all the regulated entities.
Towards this endeavour, the health insurance returns being filed by the
insurance companies have been significantly reduced, it said in a circular.
"IRDAI has been doing a remarkable job implementing many practical and
innovative reforms within a short span of time. We welcome the regulator's
current move of easing the compliance burden for insurers," said Rakesh Jain,
CEO, Reliance General Insurance.
In India, insurers are mandated to submit various returns to the regulator,
including financial statements on an annual basis, valuation of assets and
liabilities as well as solvency margin and actuarial report.
These revised reporting norms will be applicable with immediate effect.
At present, general insurers and standalone health insurers are mandated to
submit 17 business returns in a year to the regulator.
However, now with the new reform in play, the number of business returns has
been reduced to half and general insurers and standalone health insurers will
need to file only 8 returns in a year, Jain explained.
"This will not only lessen the compliance burden but also help us increase our
focus on the business that will in turn ensure better product offerings and
faster and convenient services to the customers. Such a move will augment the
insurance penetration in the country in the long term," he said.
The insurance regulator is carrying out a series of reforms in the sector to
promote ease of doing business for the insurers.
In July this year, minister of state for finance Bhagwat Karad said in
Parliament that Irdai has formed several working groups in order to make a
comprehensive review of the existing regulations under the aegis of Life
Insurance Council and General Insurance Council.
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EXCLUSIVE
RELIANCE GENERAL INSURANCE PARTNERS WITH PAYTM TO OFFER CUSTOMISABLE HEALTH
POLICY
The policy was launched in May this year and offers a number of benefits that
can be personalised by the customer as per the need. After the recent
partnership, the policy can be accessed by using Paytm’s mobile application.
* ETBFSI
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Reliance General Insurance Co. Ltd. has joined hands with Paytm to offer
Reliance Health Gain Policy – customisable health insurance products to the
masses in a few minutes by filling in the required details on the Paytm app.
With this partnership, Reliance General Insurance and Paytm aim to enhance the
insurance penetration in the country.
Towards this end, RGI is making the policy available to Paytm’s vast customer
base across India’s smaller cities and towns.
"We look forward to extending the innovative health insurance solutions of
Reliance Health Gain Policy to the masses through Paytm's robust presence across
the country. Thereby empowering the customers with the freedom of choice in
health insurance," said Anand Singhi, Chief Distribution Officer, Reliance
General Insurance.
The policy is available in three different plans - Plus, Power and Prime – and
an array of features to facilitate customisation of policy for each customer.
The policy has 38 features like Double Cover that provides twice the amount of
sum-insured to be used during the same claim, unlimited reinstatement to restore
the base sum insured amount and a guaranteed cumulative bonus that protects loss
of cumulative bonus post claim.
"We are committed to improving the insurance penetration in the country by
offering seamless digital access to our massive customer base across India. Our
recent partnership with Reliance General Insurance is aligned towards making
digital insurance accessible to all,” said Paytm's spokesperson.
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EXCLUSIVE
HEALTH INSURANCE COVER ELUDES MANY ORGAN DONORS
Their existing insurance covers the cost of transplant and post-operative
treatment, but a new enhanced insurance post-surgery is difficult, donors and
recipients said.
* TNN
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Organ donors are life savers when they gift a part of themselves to others but
they often find it difficult to get health insurance thereafter. Firms either
refuse to provide them cover or do so with multiple riders.
Their existing insurance covers the cost of transplant and post-operative
treatment, but a new enhanced insurance post-surgery is difficult, donors and
recipients said.
Shivraj Arekar, 31, operations manager in a real estate company in Pune, will
participate in athletics at the World Transplants Games at Perth next year. He
donated part of his liver to his father on January 15, 2019, and the transplant
cost was covered by his company’s corporate insurance.
“After leaving the organisation in 2020, I sought a health cover. I was told no
policy can be issued under Insurance Regulatory and Development Authority of
India (IRDAI) guidelines because of my surgery,” he said.
Arekar said he had applied for 8-10 insurance companies and all rejected his
plea. “When government insurance companies too refused my application, I fi led
a complaint with IRDAI. Then, a firm offered cover without the donated organ.
The second company agreed after we took special approval and resubmitted my
case. After five months, several calls and visits later, I got a Rs five lakh
cover, including my liver (as a pre-existing illness) after the two-year resting
period,” he added.
Recipients too face the same trouble. Heart recipient Karhun Nanda, who will
captain the football team for the Games, underwent surgery in England. “I had a
cover for many years, and I was an active football player until 2015. I
underwent surgery the same year and stents were inserted. A month later, doctors
found that I had a weak heart, and was declared a high-risk patient. I had to
undergo another surgery. When the hospital sent an e-mail to the insurance
company, they refused to cover it stating that I had hidden my medical history
even though my hospital said that they were not connected. I paid Rs 10 lakh. I
tried getting medical cover but my applications were declined. As of now, I have
no cover. I need Rs 30,000 to Rs 50,000 for medicine, but I can afford it,”
Nanda said.
Software engineer Vijay Bahadur Yadav from Mumbai swapped his kidney with a
patient to get one for his wife. He underwent the transplant in June 2018 and
will represent India at the World Transplant Games in several athletic events.
He said, “I am fi t to participate in a global sports competition, but insurance
companies won’t cover me. Thankfully, my workplace covers my health insurance
under the corporate scheme. ”
Bhaskar Nerurukar, head of health administration team at Bajaj Allianz General
Insurance, said organ donor cases are not treated differently for underwriting
and premium, and there is no differential pricing.
They may review a case based on a medical condition post organ donation and
detailed medical tests will be advised before arriving at a decision in such
cases, he said.
Amit Chhabra, business head of health insurance, Policybazaar. com, one of
thelargest insurance marketplaces, said most health insurance policies have an
inbuilt cover for organ donor transplants.
“An existing policy will cover the cost of a transplant, with terms and
conditions. But a new one will come with the complexity of the disease. The
insurer may issue the policy for a minor transplant. If it is a major surgery
such as a kidney transplant, you may not get health insurance benefits,” he
added.
He added that some companies follow a loading-based calculation for such
customers which could increase the premium.
Several calls and emails to IRDAI officials were not responded to till Thursday.
Dr Rajneesh Sahai said organ donors and recipients do face problems
post-transplant, and insurance companies may discriminate against them.
“The IRDAI is under the finance ministry. We could request the health ministry
to take it up with the finance ministry to direct IRDAI to stop any
discrimination against organ donors and receivers,” he said.
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EXCLUSIVE
GOVT APPOINTS DEVASIA AS MEMBER IRDAI
New Delhi, Sep 14 (PTI) The government has appointed a senior executive from the
private sector as member (non-life) in the Insurance Regulatory and Development
Authority of India (IRDAI). This is departure from the set tradition of hiring
people from public sector insurance companies as member.
* PTI
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New Delhi, Sep 14 (PTI) The government has appointed a senior executive from the
private sector as member (non-life) in the Insurance Regulatory and Development
Authority of India (IRDAI). This is departure from the set tradition of hiring
people from public sector insurance companies as member.
Thomas M Devasia is currently technical expert at Marsh Insurance Brokers India
working in Kochi, Kerala, according to a government notification.
The Central Government has appointed Devasia as member (non-life) in the IRDAI
on a consolidated pay package of Rs 4 lakh with effect from the date of
assumption of charge of the post till attaining the age of 62 years until
further order, whichever is earlier, it said.
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EXCLUSIVE
INSURERS JUGGLE RISE IN CLAIMS IN INDIA'S BENGALURU FLOODS AFTERMATH
INDIA-WEATHER-BENGALURU-Insurers juggle rise in claims in India's Bengaluru
floods aftermath
* Reuters
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BENGALURU - India's insurance providers are bracing for a massive rise in claims
for damaged cars and property as floodwaters start receding in India's tech hub
Bengaluru, with initial estimates showing losses running into millions of
rupees.
Three days of heavy rainfall from Sept. 5 saw homes and offices in Bengaluru's
IT corridor flooded, sparking chaos and raising questions over poor urban
planning. Luxury cars and homes were submerged and some millionaires had to
evacuate their homes.
Now, as residents start evaluating their losses, many were gearing up for delays
in assessments by insurance companies because of the number of claims being
filed.
"My car was parked in the basement when the heavy rains struck. The insurance
staff took four days to survey the car, towed it to a garage to check the
damages before processing the insurance claim," said Prabha Dev, a 38-year-old
homemaker.
"After the check, I was informed that the car is beyond repair," she said, but
added she is still holding out hope that her local garage could help get it back
running.
While insurance providers say a final estimate on claims filed will only be
known in the next couple of weeks, several companies said they were already
handling hundreds of requests from the affected areas and were expecting more.
"High value claims of premium segment vehicles such as BMW, Mercedes and Audis
have been reported. Based on claims reported till September 13, losses for
premium vehicles affected in the Bangalore floods is estimated to cross 100
million rupees ($1.26 million)," said Sanjay Datta at ICICI Lombard General
Insurance.
"We are expecting approximately 100 more flood loss claims to be intimated in
the next few days."
Acko General Insurance Ltd said it had received over 200 claims for flooding
incidents, of which around 20% were for total losses of vehicles, while an
executive with Reliance General Insurance, who did not want to be named because
he was not authorized to speak to the media, said claims of about 50 million
rupees had already been filed.
Bajaj Alliance said monsoon-led damage in Bengaluru had resulted in property
claims rising by almost 100%, with a double-digit increase in motor claims.
The companies are among the biggest insurance providers in the country. ($1 =
79.4150 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru, additional reporting by Navamya
Ganesh Acharya and Sherry Mary Jacob; Editing by Raju Gopalakrishnan)
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EXCLUSIVE
COMPLIANCE RELIEF: IRDAI REDUCES NUMBER OF RETURNS TO BE FILED BY INSURERS FOR
HEALTH INSURANCE
In India, insurers are mandated to submit various returns to the regulator,
including financial statements on annual basis, valuation of assets and
liabilities as well as solvency margin and actuarial report.
* ET Online
Click Here to Read This Story
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In order to further cut compliance burden for insurance companies, regulator
Irdai on Tuesday rationalised health insurance business returns reporting norm
by reducing the number of returns that need to be filed in a year.
The move is part of promoting ease of doing business for insurance companies and
to reduce the compliance burden for all the regulated entities, said the
Insurance Regulatory and Development Authority of India (Irdai).
Towards this endeavour, the health insurance returns being filed by the
insurance companies have been significantly reduced, it said in a circular.
"Now, the general and health insurers will have to file 8 returns and life
insurers will be filing 3 returns in place of 17 returns being filed currently.
This step will further help insurers in focusing on their business rather than a
plethora of compliances and in turn help in increasing the insurance penetration
in country," it said.
These revised reporting norms will be applicable with immediate effect.
In India, insurers are mandated to submit various returns to the regulator,
including financial statements on annual basis, valuation of assets and
liabilities as well as solvency margin and actuarial report.
Among others, reporting of financial condition for life insurance business;
Incurred But Not Reported (IBNR) claims in case of general insurance business;
reinsurance plans on an annual basis; and monthly statement on underwriting of
large risks in case of general insurance companies are also mandated.
They are also required to report about the details of capital market exposure on
a monthly basis; investment policy, quarterly and annual returns on investments.
The insurance regulator is carrying out a series of reforms in the sector to
promote ease of doing business for the insurers.
In July this year, minister of state for finance Bhagwat Karad said in
Parliament that Irdai has formed several working groups in order to make a
comprehensive review of the existing regulations under the aegis of Life
Insurance Council and General Insurance Council.
(With PTI inputs)
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