Irdai may tweak pension product norms to lure investors

The Insurance Regulatory and Development Authority of India (Irdai) is planning to tweak regulations on pension products to attract more investors.

The insurance regulator will release the exposure draft on ‘listing of Indian insurance companies’ and is also looking at coming out with a discussion paper on premium financing, particularly in the non-life sector.

The insurance regulator will release the exposure draft on ‘listing of Indian insurance companies’ and is also looking at coming out with a discussion paper on premium financing, particularly in the non-life sector.

Speaking at the Dun & Bradstreet’s national conclave on insurance, Nilesh Sathe, member-life, Irdai, said: “Pension segment has always been ignored. With the NPS, the awareness is being created toward

With the NPS, the awareness is being created toward pension. Irdai will re-look into some of the aspects of deferred annuities and immediate annuities plan, where withdrawal for specific purposes can be allowed because products need some sort of flexibility which NPS is likely to provide.

The insurance industry should also provide some flexibility on annuities products.”

An annuity is a lump-sum investment, which gives a regular income to the investor for the rest of his life. It can be an immediate annuity, which starts giving returns immediately, or it could be a deferred annuity, which starts paying after a certain period.

It can be an immediate annuity, which starts giving returns immediately, or it could be a deferred annuity, which starts paying after a certain period.

Right now, only insurance companies offer annuity plans in India.

Officials at Irdai said the regulator is looking to bring draft regulations on commissions in the next board meeting. Irdai will come up with its exposure draft on listing in near future. Earlier this month, the insurance regulator had released a discussion paper on

Earlier this month, the insurance regulator had released a discussion paper on listing of Indian insurance companies’.

“We have released a discussion paper on listing of insurance companies. Comments of the stakeholders will start pouring in on the subject now. Based on that, we will be releasing the exposure draft. Then we will come out with a guideline on the issue and we will give enough time to insurers so that their business models can be worked out and their foreign partners are made comfortable for the same,” said Sathe.

Irdai also also looking at premium financing for the insurance sector. “All over the world, if a person wants to buy insurance and does not have money the premium is funded by the banks and investors can pay in installments. This is more for the non-life insurance products, as they cant be taken in installments. So, we are planning to come out with the discussion paper and hope to come out with some regulations in one month time,” Sathe said.

“All over the world, if a person wants to buy insurance and does not have money the premium is funded by the banks and investors can pay in installments. This is more for the non-life insurance products, as they cant be taken in installments. So, we are planning to come out with the discussion paper and hope to come out with some regulations in one month time,” Sathe said.