IRDAI

Irdai allows insurers to hedge interest rate risks with bond forwards

Irdai under Panda moved to principle-based regulation from rule-based regulation

Regulator Irdai on Monday permitted insurance companies to undertake transactions in bond forwards as users for hedging interest rate risks. The Reserve Bank has recently issued directions specifying that any entity, eligible to be classified as a non-retail user shall be eligible to undertake transactions in Forward Contracts in Government Securities (Bond Forwards) as a user. In a circular on 'Exposure to Forward Contracts in Government Securities (Bond Forwards)', Insurance Regulatory and Development Authority of India (Irdai) said that in view of the RBI's directions and considering insurers requests for introduction of Bond Forwards, "insurers are hereby permitted ...to undertake transactions in Bond Forwards as users for hedging purpose". The Irdai has also imposed certain conditions. Insurers should undertake only long positions in Bond Forwards (buying Bond Forwards) and report such transactions on quarterly basis. Also, Bond Forwards are not permitted for ULIP business, I

The last day for submitting applications is April 6

Insurers seek Irdai's nod for more time to implement Bima-ASBA, citing early deadline; feature allows policyholders to block premiums until underwriting is completed

The insurance regulator had in mid-February set the March 1 deadline for rollout of the feature, which allows insurers to take a customer's consent and block the premium amount for a period of 14 days

Irdai's new accounting norms for premium reporting has resulted in insurers revising commissions on multi-year health policies

A home insurance policy covers damage from earthquakes, fires, explosions, floods, landslides, cyclones, storms, aircraft damage, and acts of terrorism

Obligatory cession is the portion of business that Indian non-life insurers must mandatorily reinsure with GIC Re

Change in accounting norms, sharp decline in premiums from govt. schemes have also weighed on health insurance premium growth

Irdai felt the need to permit insurers to hedge through equity derivatives

The regulator also issued guidelines aimed at providing insurers with enhanced opportunities for risk management and portfolio diversification

Regulator Irdai on Friday permitted insurers to use equity derivatives to hedge their portfolios, a move aimed at reducing risk in a volatile capital market. Insurance Development and Regulatory Authority of India (Irdai) has issued the 'Guidelines on Hedging through Equity Derivatives' following representations from insurers. "This move aims to facilitate insurers to hedge their existing equity exposures against volatility in equity market and ensure preservation of market value of equity investments and thereby reducing risks in equity portfolio," it said. Under the current regulatory framework, Irdai allows insurers to deal in Rupee Interest Rate Derivatives in the form of Forward Rate Agreements (FRAs), Interest Rate Swaps and Exchange Traded Interest Rate Futures (IRFs). Besides Fixed Income Derivatives, insurers are also permitted to deal in Credit Default Swaps (CDS) as protection buyers. "As there is an increasing trend in investments in equity market by insurers and owing

After multiple delays, Phase-I of Amazon-like one-step digital platform may be launched in mid-2025

Insurance regulator Irdai has told insurance firms which will be shareholders in Bima Sugam to inject initial capital of Rs 300 crore

Highly placed sources in the insurance sector clarified that the panel will not propose any further amendments and that its mandate is to work on the proposed amendments

Both the Life and General Insurance Councils have to issue a standard declaration within a week of Irdai's circular to be included in the proposal for authorisation.

The regulator also said, "A compliant, simple, comprehensive, and customer-friendly model has been signed off by the top brass of the industry."

To list on an Indian stock exchange, an insurance company must meet several performance parameters

The government seeks to fully unlock the potential of India's insurance industry, and has announced opening up of the sector to 100 per cent FDI