IRDA to set up insurance institute

The Insurance Regulatory Development Authority (IRDA) is planning to set up a school of actuarial sciences. The regulator in talks with the Actuaries Society of India for this project.

"There is an immediate requirement for enhancing actuarial training facilities in India and this institution will help address the problem of lack of qualified actuaries. It will also ensure that insurance companies are able to develop risk mitigating products and provide innovative and affordable products," IRDA Chairman CS Rao said at the 7th Global Conference of Actuaries.

Rao said: "The insurance sector has been witnessing a double digit growth, which is around 35 per cent in life and 15 per cent in the non-life segment segment. This growth is expected to continue."

He pointed out that 14 life insurance companies mopped up a premium of Rs 13,153 crore from new businesses during April-December 2004-05, while 12 non-life insurers collected Rs 13,570 crore.

The stiff competition among public sector units and private insurers has led to an increase in the insurance penetration and a rise in the ratio of premium to the overall GDP.

Rao said companies should come up with cheaper products for the poor. Stressing the need for opening up the insurance sector, Rao said: "The notion that opening up of the insurance sector to private players has weakened PSUs was illogical as most state-owned insurers have grown after 2000."

Rao expressed concern over the lack of co-ordination between insurance companies and actuaries and advised them to devise simple solutions in a coordinated manner to increase products.

Ficci President Onkar S Kanwar stressed that actuaries should enlarge their "canvas of knowledge". With the opening up of the pensions business to the private sector, actuaries in India have to gear up to ensure a good growth of the segment, he said.