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| Insurers seek changes in disclosure norms |
| Shilpy Sinha / Mumbai Nov 17, 2009, 00:23 IST |
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Insurance companies have sought changes in the draft exposure guidelines and have asked the regulator to defer their implementation by three months. In addition, the set of public disclosures for the insurance companies going public and those not approaching the market to raise capital are likely to be different.
The Insurance Regulatory and development Authority (Irda) had put out the draft on the exposure norms for all insurance companies on October 9, 2009, and asked insurance companies to come out with the disclosures after 45 days from November 1, 2009. Though the regulator had sought suggestions from the industry, it has not decided the changes yet.
“We may ask for more disclosures from the insurers going public,” said a senior Irda official.
“A number of disclosures such as those based on sensitivity analysis would not make sense for public,” said Life Insurance Council Secretary General SB Mathur.
The regulator has asked insurance companies to disclose the annual financial statement on a quarterly and half-yearly basis, but the industry has demanded a half-yearly presentation of data.
The regulator has asked for disclosures based on company profile, investment profile, liability valuation, risk concentration, solvency and business statistics for the last four-five years.
In addition, it has also asked for disclosures based on sensitivity analysis, related party transaction and reinsurance risk concentration.
Instead of a full balance sheet, the industry wants to come out with average balance sheet. They expect the implementation to be deferred by three months.
“These are very technical issues and putting them in public domain would not mean anything,” said Future Generali Life Insurance Chief Executive Officer Deepak Sood.
Insurers have expressed their concern over the availability of data for previous years and said that it would be difficult to provide the corresponding data. They also said that frequent disclosures would lead to an increase in expenses.
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