After new norms, FDI flow at Rs 16k cr: Irdai chief

This, after the FDI limit has been raised to 49% from existing 26%

Foreign direct investment (FDI) limit, which has been increased to 49 per cent from 26 per cent in the insurance sector, has led to flow of Rs 16,000 crore to Rs 17,000 crore into the sector, said Insurance Regulatory and Development Authority of India (Irdai) Chairman T S Vijayan on the sidelines of an insurance summit organised by the Confederation of Indian Industry (CII).

Vijayan added that when reinsurance branches come in, substantial money will come in. Several foreign reinsurers have applied for branch presence in India and second stage approval will come for consideration at Irdai's next board meeting in October.

Irdai has also brought out a discussion paper on listing of Indian insurance companies. Vijayan said listing will bring more transparency into the working of the company, not only for shareholders but for outsiders as well.

"We are thinking that even if companies are not listed, they should bring disclosure requirements on a par with those of listed entities," he explained.

There were reports the regulator had raised some concerns about the proposed HDFC Life-Max Life merger.

Vijayan said there was no concern and they have only made it clear that customer protection is the key.

"Whatever promises have been made to customers should be upheld. How much reserves are maintaining for policyholders account will be key," he said.

He said fair treatment to policyholders of both companies should be given.

On insurance sector reforms, Vijayan said insurers should bring more flexibility in products, with respect to design, and should have flexible premium payments.

Here, he said, the sector would need strong support of technology.