Page 8 - Insurance Times July 2016
P. 8
IRDAI
Use analytics for better IRDAI grants 16 FDI proposals worth Rs. 14,592 crore
product design and distri-
bution: Vijayan Insurance regulator IRDAI has approved as many as 16 proposals amounting to
Rs 14,591.9 crore as foreign investment, Parliament was in-
Use of data analytics will improve formed. "Post notification of the Insurance Laws (Amendment)
product design Act, 2015, IRDAI has approved 16 proposals amounting to Rs
and distribution 14,591.89 crore as foreign investment in the insurance sector,"
which expands Minister of State for Finance Jayant Sinha said in a written reply
reach of insur- in the Rajya Sabha.
ance, according
to TS Vijayan, The Insurance Laws (Amendment) Act, 2015, provides for an increase of for-
Chairman, In- eign investment cap in an Indian insurance company to 49 per cent from 26 per
surance Regu- cent with the safeguard of Indian ownership and control, he said.
latory and Development Authority of Revised IPO guidelines for raising fund to come soon
India (IRDAI).
Revised initial public offering (IPO) guidelines will be issued soon for insurers as
Proper collection and deployment of some of them are keen to use this route to raise funds,
data for analysis will help fill existing the Insurance Regulatory and Development Authority of
gaps in key areas such as auto, health India (IRDAI) chairman T.S. Vijayan said while notifying
insurance and disaster manage- that the total foreign investment in sector was Rs.15,000
ment/ insurance, he said. crore in the last one year due to increase in the foreign
direct investment limit.
"In insurance, focus should be on
those areas which are touching the Vijayan said a total investment came to India in various forms, mostly equity,
lives of many and industry players since the passage of the Insurance Laws (Amendment) Bill in March 2015. "Busi-
should share data and experience for ness has been good for all insurance companies in April. If this trend continues,
better results," Vijayan said, adding we can expect higher growth in financial year 2016-17 also in life, non-life and
that the Insurance Information Bu- health," Vijayan told reporters.
reau (IIB), an arm of IRDAI, was ca-
tering to the data requirements for IRDAI issues fresh corporate governance guidelines
insurers.
IRDAI has released comprehensive corporate governance guidelines, including
Highlighting that huge data is avail- a cap on salary of CEOS and policy on whistle blowers. The revised guidelines,
able in the country with 1.2 billion which came against the backdrop of changes in the Companies Act, 2013, com-
people, the regulator said insurance bine the conditions regarding the corporate governance practices, appointment
should also be linked to Aadhaar for of MD/CEO/Whole Time Director and other Key Management Positions as well
achieving financial as well as insur- as the appointment of statutory auditors of insurers.
ance inclusion. "Our efforts are in
this direction," he added. Insurers are well advised to put in place a 'whistle blower' policy, where-by
mechanisms exist for employees to raise concerns internally about possible ir-
regularities, governance weaknesses, financial reporting issues or other such
matters, it said.
8 The Insurance Times, July 2016
