The Insurance Regulatory and Development Authority (Irda) plans to revisit the regulations for micro-insurance products, which are usually small ticket-size insurance policies. The insurance regulator is in talks with the industry for a fresh look into the existing regulations that include bringing down the premium levels and improving the delivery models.
“There are some structural issues in micro-insurance products in terms of benefits payout. Hence, we would be extending a revisit to the existing regulations,” said J Hari Narayan, Irda chairman, on the sidelines of a convocation at ICICI Lombard and Institute of Insurance and Risk Management.
Meanwhile, Irda regulator said that the total assets under management (AUM) by Indian insurance companies has improved to R18 lakh crore in 2012. AUM increased from R1 lakh crore in 2000, touching R8 lakh crore in 2008. “The AUM for FY13 will be more or less flat in the life insurance sector but we are expecting 18% y-o-o growth in the general insurance,” he added. On the final guidelines for traditional life insurance products, he said that the insurance advisory has considered these guidelines in its last meeting and is in the advanced stage.