)
The Insurance Regulatory and Development Authority (Irda) has called for a meeting of the chief executives and appointed actuaries of the 24 life insurance companies on May 2. This is the first time the life insurance sector members would be formally meeting the new Irda chairman, T S Vijayan, who took over in February.
The industry will discuss issues related to the new regulations passed by Irda, mainly the traditional product guidelines, published in February. The guidelines made significant changes in the product structures, surrender charges and commissions payable to the insurance agents.
Life insurers will have to re-file 70-75 per cent of their product suite to conform to the new guidelines. The insurers have been given time till June 30, 2013 and September 30, 2013 to re-file their group and individual products, respectively.
“The regulator wants all the life insurance companies to give their opinion about the new guidelines and concerns, if any. Irda has also asked for details on whether the implementation of these guidelines would have any impact, positive or negative, on our business,” said a senior official of a private life insurance firm.
The Life Insurance Council, on behalf of the insurers, has already given its view about the new regulations to the regulator. Several provisions of the regulations such as variable insurance products have been termed impractical by the industry.
According to industry insiders, the regulator would seek companies’ opinion on whether any change is required in the provisions before the final implementation.
Among the other issues, areas such as pension product reforms including service tax and guaranteed return, and how to increase the penetration and density of life insurance would be some of the other topics of discussion.
