Irda to discuss concerns of insurers

The Insurance Regulatory and Development Authority (Irda) is going to discuss the concerns expressed by the insurers over the new guidelines on unit-linked insurance plans (Ulips).

“We will discuss with actuaries what their actual concerns are,” Irda Chairman J Hari Narayan told Business Standard on Wednesday.

Insurers have stated that the fresh guidelines issued by Irda on Monday were going to affect their performance. According to them, the new norms will lead to higher capital requirement and impact their profitability.

Particularly, they said, prescription of a minimum guaranteed return for pension plans at an annual 4.5 per cent was a difficult task and not practical.

However, while issuing the guidelines, Irda stated the minimum guaranteed return was prescribed to protect “the life time savings of the pensioners, from any adverse fluctuations at the time of maturity”.