Thursday, May 2, 2013

IRDA Chief To Meet Life Insurers On May 2

The Insurance Regulatory and Development Authority (IRDA) chief Sri TS Vijayan has called for a meeting of the chief executives and appointed actuaries of all life insurers on May 2.

This is the first time after Sri Vijayan took charge as IRDA chairman in February this year, the members of life insurance business would formally meet him and discuss issues related to the new regulations passed by the regulator, especially the traditional product guidelines, published in February. The guidelines made significant changes in the traditional product structures, surrender ch
arges and commissions payable to the insurance agents.

Life insurers will have to re-file around 70% of their products to meet the new guidelines. The insurers have been given time till June 30, 2013 and September 30, 2013 to re-file their group and individual products, respectively.

According to a senior official of a private life insurance company, the regulator has asked all life insurance companies to give their opinion about the new guidelines and concerns, if any. The regulator has also asked for details on whether the implementation of these guidelines would have any impact, positive or negative, on business.

The Life Insurance Council, on behalf of the life insurance companies, has already given its opinion about the new regulations to the IRDA. Several provisions of the regulations such as variable insurance products have been termed impractical by the industry.

Issues such as pension product reforms including service tax and guaranteed return, and how to increase the penetration and density of life insurance would be some of the other topics of discussion.

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