The Insurance Regulatory and Development Authority (IRDA) is looking to tweak regulations in order to tighten the insurance products distribution system, said its Chairman T.S. Vijayan.
Addressing newspersons on the sidelines of the convocation held by the Institute of Insurance and Risk Management (IIRM) here on Tuesday, Vijayan said: “We are looking at sub-brokers and bank channels in distribution. The discussions are on the modalities changes.’’
IRDA had recently issued guidelines for utilisation of common service centres for insurance distribution as part of its focus on expanding insurance penetration in the country. Earlier, it had effected many changes in the product norms in the life and health insurance segments with the main objective of reducing mis-selling. On the new norms for life insurance products, the IRDA chief said, so far, over 300 products were approved in line with the new product design norms.
“I think, over 99 per cent of the product approvals have been completed,” he added. On the request from insurers, the deadline for transition into a new product regime was extended by three months from September 30 to December 31.
On the business trend in the insurance sector this year, Vijayan said it is expected to touch Rs 4 lakh crore in the current financial year, compared with Rs 3.75 lakh crore last year, mainly due to a spurt in the renewal premium and general insurance.
Earlier, addressing students of IIRM, he said with only 3.86 per cent penetration, insurance sector had huge potential for growth with a corresponding increase in quality of personnel.
New courses
T. Narasimha Rao, Managing Director, IIRM, said the institute plans to offer new multi-level courses of short and long durations in business analytics, survey and valuations, regulatory practices and company specific programmes. IIRM would collaborate with the Chartered Insurance Institute (CII), London, he added.
Steve Jenkins, Director, CII, London, said as a global industry, the insurance industry provides both opportunities and challenges. Issues relating to an interventionist regulation, data management and political aspects would be the main challenges in the future, he added.