Reinsurance norms to be finalised soon: IRDAI chairman

T S Vijayan says he expects at leat 4-5 foreign reinsurers to enter the domestic market

Guidelines for foreign reinsurance companies to open up branch operations in India would be finalised within the next few days, said T S Vijayan, chairman of Insurance Regulatory and Development Authority of India (Irdai).

Speaking at an insurance summit organised by ASSOCHAM, Vijayan said they expected at least six foreign reinsurers to launch operations in India.

The regulatory body has opened up its regional office in Mumbai, which is its second regional office after Delhi. This office will have the audit-inspection and consumer grievances departments here, Vijayan said that apart from a supervision team here, this office would be used to hold meetings with insurance company CEOs, apart from customer complaints and grievances being dealt from this office.

Talking to reporters on the sidelines of the Mumbai regional office opening, Vijayan said Irdai would also bring out fresh accounting norms. He added the segment-wise reporting and maintenance of accounts would be done. "We want to ensure that there is no cross-subsidisation for any product/segment and it should be appropriately priced," he added.

With respect to product pricing, Vijayan said there should be a periodic review of product pricing. "We will look at incurred claims and if they are lower than projected for three years, product pricing will also be required to be brought down," he said.

The regulator is in the process of bringing out corporate governance regulations which will outline exactly as to what Indian management control refers to. Vijayan said that accounting regulations will also be brought out shortly.

On agent attrition, the IRDAI chief said that the industry should work on enhancing the skills of these agents by engaging with bodies like National Skills Development Corporation.