Page 12 - The Insurance Times November 2024

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the large listed as well as unlisted in-
Panda encourages more conglomerates to enter In- surance companies will go into phase
surance Sector one and we basically have this window
of about 24 to 30 months to get this
Insurance industry regulator IRDAI chairman Debasish Panda asked more done," Shah said.
conglomerates to enter the insurance fray, pointing out that the Indian mar-
ket offers handsome opportunities to grow. The new standards will help interna-
tional investors to compare the
He also said that the watchdog is "nudging" more players to go for listing
on the capital markets to create more transparency and information, which financials of domestic insurers with
will ultimately benefit shareholders and the sector as a whole. their global counterparts.
Panda refrained from commenting directly on news reports of a cut in the India Has Potential for Ad-
Goods and Services Tax, calling the issue as the one outside his realm. How-
ever, he said that IRDAI would want to ensure that covers become more ditional Insurers, Says
affordable, which will help deepen the reach, but was quick to add that IRDAI Chairperson
cutting taxes is not the only way to do so.
India's insurance regulator urged large
business houses and conglomerates to
Insurers Granted Exten- sification of assets and liabilities of examine the feasibility of starting an
companies operating in the insurance insurance business, given the pros-
sion Until FY27 to Imple- sector and provides consistent prin- pects offered by the large population

ment New Accounting ciples for insurance contracts. and increasing incomes.
Standards "We have received a communication Speaking at an industry event
The IRDAI has asked both bank-spon- from IRDAI and we believe some peers organised by the CII, IRDAI chairper-
sored and non-bank-sponsored insur- have also received communication, son Debasish Panda said the 1.4 billion
ance companies to implement IFRS 17 which talks about IRDAI's intent to roll population base offers massive growth
regulations by FY27, a move that will it out from April 2027," said Niraj Shah, opportunities.
give these companies sufficient time Executive Director (ED) & Chief Finan- "There is scope for more than 70 insur-
for implementation. cial Officer (CFO), HDFC Life Insurance ance companies to cater to 1.4 billion
during the post-earnings analyst call. people. I encourage more conglomer-
Previously, IRDAI had set a timeline of
FY25 for the implementation of IFRS 17 Developed by the International Ac- ates to enter the insurance sector. It
in the insurance sector. IFRS 17 or In- counting Standards Board (IASB), IFRS is an exciting time for the industry,"
ternational Financial Reporting Stan- 17 became effective on January 1, said Panda.
dard 17 is an accounting standard that 2023. "So, basically there is a phase- Panda said that regulatory processes
provides a framework for reporting wise implementation plan, which we have been streamlined, making it easier
insurance contracts. It states the clas- understand will be followed where all for new companies to set up shop. "We

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