Irda publishes five key reforms in gazette

The Insurance Regulatory and Development Authority (Irda) has published in the gazette of India five key reforms related to the sector, including new guidelines for insurers and reinsurers. The reforms are: Investment regulations for insurers, Irda (life insurance-reinsurance) regulations; places of business regulations; Irda appointed actuary amendment regulations and regulations for the standard proposal form.  

According to the actuary amendment regulations, non-life insurers will also have appointed actuaries as full time employees.

General insurers have been given two years’ time to appoint those actuaries as “employees”.

According to the gazette notification, an appointed actuary should have a minimum experience of 10 years, out of which two years must be post-fellowship qualification and at least two years’ experience must be in life, non-life or health insurance.

The new standard proposal form norm called for a common proposal form for all life insurance proposals.

According to the investment regulations, insurers could invest from 10 to 15 per cent in equity, based on their investment assets. The limit is 10 per cent for investment assets less than Rs 50,000 crore, 12 per cent for investment assets for Rs 50,000 crore to less than Rs 2.5 lakh crore.

For companies with investment assets of more than Rs 2.5 lakh crore, the limit is set at 15 per cent.