The insurance regulator, IRDA, will bring out new guidelines for corporate gov-ernance and mergers & acquisitions for insurers in the
financial year 2009-2010, a top official said.
"The levels of disclosure by insurance companies have to be improved and we are working on that. An internal committee will be set up for this purpose. Insurance companies don't disclose as much as listed companies but we are working towards this," Insurance Regulatory and Development Authority (Irda) chairman J Hari Narayan told reporters in Chennai on Sunday, on the sidelines of a magazine launch by Star Health Insurance.
Mr Narayan added that a separate committee is also being formed to work out new norms for mergers and acquisitions in the insurance sector.
A couple of drivers may lead more action in this industry- the hike in the invest-ment limit by foreign partners in the new insurance law and the consolidation hap-pening among the foreign venture partners of Indian insurance companies. "It is not that Irda is predicting a trend but something might come up, given the capital in-tensive nature of business," Mr Narayan said.
On the impact of slow down on the insurance sector, Mr Hari Narayan said the rate of growth has come down and that the industry would see a growth of 17% com-pared to 24% last year.
Irda is also working on a data warehouse for health claim management, which would enable insurers manage health insurance claims effectively and improve products. "Almost all the claims have been computerised in the last 3-4 years. We hope to make this data available in the next few months for the industry," Mr Hari Narayan said. He added that insurers could mine the data to design products based on the nature of claims in each location.
"The levels of disclosure by insurance companies have to be improved and we are working on that. An internal committee will be set up for this purpose. Insurance companies don't disclose as much as listed companies but we are working towards this," Insurance Regulatory and Development Authority (Irda) chairman J Hari Narayan told reporters in Chennai on Sunday, on the sidelines of a magazine launch by Star Health Insurance.
Mr Narayan added that a separate committee is also being formed to work out new norms for mergers and acquisitions in the insurance sector.
A couple of drivers may lead more action in this industry- the hike in the invest-ment limit by foreign partners in the new insurance law and the consolidation hap-pening among the foreign venture partners of Indian insurance companies. "It is not that Irda is predicting a trend but something might come up, given the capital in-tensive nature of business," Mr Narayan said.
On the impact of slow down on the insurance sector, Mr Hari Narayan said the rate of growth has come down and that the industry would see a growth of 17% com-pared to 24% last year.
Irda is also working on a data warehouse for health claim management, which would enable insurers manage health insurance claims effectively and improve products. "Almost all the claims have been computerised in the last 3-4 years. We hope to make this data available in the next few months for the industry," Mr Hari Narayan said. He added that insurers could mine the data to design products based on the nature of claims in each location.
Source:Economictimes
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