The IRDAI is working on proposals to amend insurance legislation that would provide for rationalised capital requirements, composite registration, one-time registration of intermediaries, value-added services by insurers, and the sale of other financial products by insurers, according to Mr Debasish Panda, IRDAI chairman.
In an interview by Livemint, Mr Panda outlined what the insurance industry can expect as the IRDAI revamps the regulatory system to improve the ease of doing business and lighter regulation.
He said, “Various modalities are under consideration, including an e-marketplace protocol, localised women-centric distribution force, and simple benefit-based products, which may greatly enhance the ease of doing business and significantly contribute to insurance inclusion.”
The first set of reforms already implemented included measures to ease the registration of new entities, including the creation of a facilitation cell and on-tap NOC (no-objection certificate) issuance, facilitating the launch of new products, increasing flexibility in raising capital, opening up distribution, and promoting accessibility to reinsurance etc.
Progress on risk-based capital framework
Mr Panda said the regulator is also working on an India-specific risk-based capital (RBC) regime for insurers to recognise asset-side risks and interactions between various risks faced by insurers.
The Indian insurance sector is currently under a factor-based solvency regime, primarily based on the liability profile of insurers.
