Private life insurance companies will soon be able to tap the capital markets as the insurance watchdog Irda will be ready with the guidelines for public listing for life insurance companies by February, chairman Insurance Regulatory Authority of India, J Hari Narayan said.
The move will enable such companies to raise capital from the market and cater to the growth in insurance business. The present cap of 26% FDI in insurance prevents companies to grow business beyond a point. According to the draft guidlines prepared by Irda, insurance companies with an experience of ten years will be the eligible candidates for listing. In October last year, market regulator Sebi had approved life insurance companies to issue IPOs.
Talking about the health insurance sector, Irda chairman also said, “Draft guidelines on portability of health insurance policies will be issued by February-end.” Much to the relief for the health insurers, they will have the choice to switch over to another firm with the same conditions, under the insurers portability option to be formulated by the regulator.