The Insurance Regulatory and Development Authority (Irda) has asked all life insurers to disclose the information on premium awaited-policies, in order to measure the persistency rate, or the renewal rate of policies.
“Every insurer has their formula to calculate persistency. This will lead to a standard formula as companies will use it to evaluate the lapse rate. The end purpose of the regulator is to increase disclosures,” said Bharti AXA Life Insurance chief financial officer V Srinivasan.
The regulator has asked insurance companies to provide data of premiums awaited in the individual business of non-single premium for both number of policies on which premium is awaited and the premium amount on these policies.
It has asked insurers to separately submit data on the individual policies sold under rural and social sector obligations.
The regulator has asked insurers to furnish the details of polices awaited for 2008-09 separately for linked and non-linked policies with break-up of the annual premium by September 30, 2009, while the insurers can submit data of the first quarter of the current by the middle of the month following the subsequent quarter.