The Insurance Regulatory and Development Authority of India (IRDAI) has not yet taken a decision on allowing insurers to invest in the additional tier-1 (AT-1) bonds due to risks associated with the instrument, according to an IRDAI official.
“There is a debate and we have not yet agreed. As of now, we are not permitting them (insurers) to participate,” said IRDAI’s Member (Finance and Investment) V.R. Iyer, when asked whether the regulator will allow insurers to invest in AT-1 bonds or not.
There is risk associated with the instrument, she said.
Meanwhile, informed sources said the IRDAI board is likely to meet on June 30 and may accord the final approval to some foreign investors to set up branches in India.
“The regulator has received six applications from foreign reinsurers to set up branches and up to three applicants could get the final approval in this phase,” the sources said.
The UK-based Lloyds, Germany’s Munich Re and Hannover Re, Swiss Re from Switzerland are looking to foray into Indian market.