Insurance regulator, Insurance and Regulatory Development Authority of India (IRDA) on Friday said that, final guidelines on ‘management control’ for the insurance company would be brought by the month of December. Speaking at the CII Insurance Summit he also indicated that, in the next two weeks final corporate agency norms under bancassurance will be notified.
During the event, IRDAI also said that, industry should take a leaf out from the various schemes launched by the Prime Minster of India. “The insurance schemes launched by the Prime Ministers created the kind of growth in months what has taken the insurance industry years. There is a hint in it as to what the industry needs to do to create growth and appropriate value,” said Mr T S Vijayan, Chairman, IRDAI.
In the month of May, Prime Minster had launched, Pradhan Mantri Jeevan Jyoti Yojana, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana and have received positive response from the participants. Over 10 crore people have subscribed in all the three schemes as on Thursday.
Insurance industry in the last few years had seen muted growth , but participants believes that with foreign direct investments (FDI) upto 49% in Insurance sector more players will bring in capital to expand their business which can bring insurance sector back to its glory.
Speaking at the conference, S K Roy, Chariman, Life Insurance Cooperation of India said that growth of insurance sector had peaked in 2010 and since then it has tapered down. “ In March 2002, the number of individual agents associated with life insurance were 8,26,000 which reached a peak of 29,00,000 in 2010 and is now 21,88,000. This is not the cause, but effect of low growth.”
He added, “We can’t plan for building growth or building value. We have to plan for growth and value creation together at the same time. Maybe in the past we did not see both together. We grew but maybe some stake holders felt that they did not experience value proposition that they were looking forward to. Perhaps this is one of the reasons that we experienced a slump.”
The main focus and discussion of the event was on how to bring simple product that can be easily understood by investors and can also make profit for the insurance companies.