Expressing concern over private equity
(PE) firms buying stake in insurance
Regulatory and Development Authority of India (Irdai) Chairman T S Vijayan
on Friday said the regulator will come out with a decision on this in a month’s time. They have also formed a team to look into the matter legally.
companies, we look at it in two different ways — investors and promoters. Anybody can invest in the company; for promoter, we are studying what is the feasibility, and if at all somebody is coming, what are the conditions that need to be in place,” Vijayan said.
Speaking at the Assocham Global Insurance
Summit, the Irdai
chairman said, “In Irdai, we have things like 150 per cent of solvency margins irrespective of numbers etc. We are trying to move towards risk-based capital model. We have started forming a committee, taking opinions from industry and professionals. It will take time as it is not an overnight type of thing.”
With ICICI Lombard and SBI Life in line to get listed this year and HDFC life also looking to list its business in FY18, Vijayan said while it would be nice if the more than 50 insurance
firms come to the market, the regulator wouldn’t force the companies to come out with an initial public offering.
Last August, Irdai
had come out with a discussion paper on listing of all life and non-life insurance
companies. The insurers, back then, had protested against the mandatory listing of insurance
On the controversy surrounding the Pradhan Mantri Fasal Bima Yojana, where it was stated that insurance
companies were reaping profits, the Vijayan said, “Pradhan Mantri Fasal Bima Yojana
was a big success and has increased the insurance
penetration to a great level. These types of schemes cannot be evaluated in one single year. It needs building up of reserves, reinsurance support and evaluation of the extent of damages....”