The Insurance Regulatory and Development Authority of India (Irdai) is planning not to make listing mandatory for insurers for the time being. The insurance regulator is also in the process of coming out with the outsourcing and process regulations soon. Speaking on the sidelines of Insurance Brokers Association of India’s annual summit, TS Vijayan, chairman of Irdai, said, “We had come out with the exposure draft on listing of Indian insurance companies, but it’s still a draft. People are not too happy with mandatory listing, so for time being, it will not be compulsory for insurers to list.”
In August last year, Irdai had come out with the discussion paper on listing for all life and non-life insurers.
Vijayan said against the GDP growth of 7%, the growth of insurance industry is at 17%. GDP growth, demographic environment and developments of insurance products are main factors for the growth of the insurance industry. Foreign insurance companies are opening their branches in India as they see more potential here.Both the life as well as non-life insurers have seen positive growth in the past few months. In FY17, life insurance has seen first year premium at R1.4 lakh crore till February, as against R1.07 crore in the year-ago period.
In case of non-life insurance, gross direct premium underwritten in the fiscal up to February is at R1.13 lakh crore, compared with Rs 86,526.19 crore in the corresponding period of the previous year. On Thursday, Irdai had come out with the guidelines on e-commerce, which will increase insurance penetration and enhance financial inclusion in a cost-efficient manner.