Reinsurance norms

Reinsurance norms
PRESS TRUST OF INDIA

NEW DELHI, SEPT 3: The government would soon come up with reinsurance norms for life insurance companies, Insurance Regulatory and Development Authority (IRDA) chairman N Rangachary said on Sunday.

He said government will also notify guidelines on brokers and surveyors by this month. The government had earlier notified 12 set of guidelines including those pertaining to life and non-life insurance, reinsurance for non-life, accounting, investment, rural and social sector obligations for the insurance players.

"Prices of insurance policies is expected to come down considering the interest of the public with increasing number of companies applying for insurance licence," Rangachary said.

New insurance companies would have to file application for launching a new product with the regulator although IRDA would not interfere in the pricing of the products. The insurance sector, he said, is one which is under a regulated regime in every part of the globe.

"It will be a 'litmus test' for the Indian insurers as well as the regulator," he said referring to the fast developments in the coming months. Till date, seven companies have applied for insurance - Dabur-Allstate, Prudential-ICICI, Reliance Industries and HDFC-Standard Life, Sundaram Royal & Sunalliance, Max India-New York Life and Kotak Mahindra-Old Mutual.