Reducing the minimum start-up capital for insurers from the current Rs 100 crore, allowing captive insurers/standalone micro insurers/niche players/regional entities into insurance space, and minimising the regulatory compliance burden are some of the action plans of the insurance regulator for the sector.
Newly-appointed Insurance Regulatory and Development Authority of India (IRDAI) Chairman Debasish Panda on Thursday met life/general and reinsurers, with an aim to identify steps that need to be taken in short, medium and long term to support healthy growth of insurance industry, rationalise regulatory framework, and reduce compliance burden.
At the meeting, it was decided to review the existing regulations to allow new entities to enter the insurance market in India with special outreach to global investors for enhancing FDI and captive insurers, standalone micro insurers, niche players, regional entities into insurance space.
The meeting also decided to rationalise the investment norms applicable for the insurers and facilitate lowering operating costs and reviewing commission/ remuneration structure of insurance products with the aim of reducing costs to policyholders.
The IRDAI will also look at introduction of new channels of distribution and widening of scope of existing distribution channels with the aim of ensuring widespread availability of insurance products.
As regards cutting down the compliance burden, the IRDAI will move its supervision of the sector towards outcome based and technology driven that is aligned with international standards and rationalise the regulations.
The insurance regulatory will also move towards product certification by insurers wherein broad principles laid down by IRDAI will be adhered to by insurers while designing products.
Panda also told the media that the government will be moved to reduce the minimum start-up capital for insurers from the current Rs 100 crore while allowing the sectoral regulator to decide the limits.