Page 205 - Ebook health insurance IC27

Sashi Publications

Regulatory structure needed to prevent bankruptcy of the insurer

Type of structure Requirement

Statutory base Legal sanctity

Source of financing

Adequate teeth for taking action

Administrative location Housed within health Ministry

Independent health insurance agency outside ministry

Licensing and registration Check management background

Financial integrity and strength

Study business plans before granting license

Financial regulation Lay down

Prudential accounting norms

Financial reporting requirements

Continuous monitoring of positions

Product regulation Frame guidelines for product approval

Price regulation Frame guidelines for price approval

Enforcement of regulation Restricting business activity of the insurer

Levying fines and penalties on insurer

Ordering removal/change of personnel

Issuing warning to the insurer

Appointing liquidator/administrator

Monitoring by regulators Continuous monitoring of the insurer by off-site

monitoring

MIS reports

Accounts

Reinsurance contracts

Outsourcing arrangements

Linking IT system with insurers

Regulators also undertake on-site inspections to understand the ground position and

take suitable action

Website : www.bimabazaar.com, PH: 033 22184184/40078428 209