Irda-Promoted Risk Mgmt Institute Iirm Kicks Off

The Institute of Insurance and Risk Management (IIRM) was formally launched here this morning by Andhra chief minister N Chandrababu Naidu. Promoted jointly by the Insurance Regulatory and Development Authority (Irda) and the Andhra Pradesh government, IIRM has the Malaysian Insurance Institute as the resource partner.

According to Irda chairman N Rangachary, IIRM will ultimately be developed into a major regional institute to cater to the needs of the insurance industry in this part of the world. He said IIRM will not be involved in training agents or insurance administrators, but will be developed into a centre of excellence and research for the insurance industry in the region.

 

To coincide with its launch, Irda together with IIRM has organised a three-day seminar on insurance regulation & IAIS core principles for insurance supervision in emerging markets. Around 30 representatives of regulators from the South Asian Association of Regional Countries (Saarc) and neighbouring countries are participating.

Rangachary traced the over 100 year history of insurance industry in the country and said in the last few decades, under certain circumstances, it had to be brought under the government umbrella. Now, with liberalisation, the industry is reborn here in both the private and public sectors and it was necessary to establish an institute as the nerve centre for growth and excellence for the industry. IIRM is designed to play such role.

The Irda chief referred to the health of the industry and said currently it is passing through a crisis situation and was under serious strain because of the industrial recession and capital market problems. The industry's asset management has come to grief and it was trying to reestablish itself in a world that is full of risks. Irda had a role to play in taking corrective steps as per the changing situation.

The Malaysian Insurance Institute's chief executive officer, Maizon Omar, welcoming the participants at the seminar, underlined the need for quality training for regulators and practitioners of insurance in the context of globalisation and liberalisation. The formation of the IIRM at this juncture was timely, he said.

Andhra Pradesh chief minister N Chandrababu Naidu, who formally inaugurated the institute said the rapid globalisation and progress in technologies would throw up new challenges to the insurance sector in future.

Naidu assured all possible assistance from his government, including additional land for expansion of Irda activities.

"I want to see this institute shape up as one of the best centres in this part of the world. We are keen to encourage insurance business and develop Hyderabad as a favoured financial destination," Naidu said.