Irdai engaging with select insurance firms for public listing: Chairman
Mumbai, Oct 22, 2024
Irdai chairman has urged large conglomerates and business houses to invest in India's insurance sector
The Insurance Regulatory and Development Authority of India (IRDAI) is engaging with select insurance companies it believes should pursue public listing while encouraging others that have reached a certain size and maturity to do the same, as public listing enhances transparency and creates more value for policyholders and investors, Chairman of the regulatory body Debasish Panda said on Tuesday.
“We are now going to engage with a few of them who we feel are ready to go for listing. So, that work is also in progress,” Panda said on the sidelines of the CII Insurance & Pensions summit.
“We have a few (companies) already in the pipeline, who are going for listing to the market regulator. We have made our process very seamless for the so-called no objection to go and approach the market regulator,” he said.
Currently, five life insurance companies are listed, including Life Insurance Corporation, SBI Life Insurance, HDFC Life Insurance, Max Life Insurance (through Max Financial Services).
Besides this, four general insurance companies have gone public – New India Assurance, ICICI Lombard General Insurance, Star Health & Allied Insurance, and Go Digit General Insurance. Additionally, state-owned reinsurer General Insurance Corporation is also listed.
“We have removed all the entry barriers for floating an insurance company. Today, every class of investor or funds – private equity, venture capitalists, institutional investors, family offices, etc. – can invest in the insurance sector and become an investor or promoter,” Panda said, adding that large conglomerates and business groups in India should enter the insurance sector.
Meanwhile, Panda, said that the implementation of the Bima Trinity – Bima Sugam, Bima Vahak, and Bima Vistar – is at advanced stages of implementation. Bima Sugam has been formally registered and a chief executive officer (CEO) has been appointed, he highlighted. Earlier this month, Prasun Sikdar was appointed as the managing director (MD) and chief executive officer (CEO) of Bima Sugam for a period of three years.
“The appointment of other key management personnel is also at an advanced stage of getting completed and soon we should have the entire leadership team in place. We are also in the process of onboarding the system integrator –the technology service provider – and hopefully we would see the first phase of Bima Sugam’s launch soon,” said Panda.
Bima Vistar is a simple benefit-based product with parametric triggers, while Bhima Wahak would be a localised women-centric insurance field force.
Bima Sugam would be a tech-led market place, which would provide all the necessary information and available offerings at a single place, thereby reducing the information asymmetry. It is aimed at democratising insurance by making it available across geographies, across varied income levels and diverse sections of the society.
“This protocol would be connected with Indiastack to utilise the unique national digital infrastructure, enabling seamless delivery of insurance services. It would be a game changer in the insurance landscape,” Panda said.
According to industry sources, the other key managerial posts of Bima Sugam are expected to be filled in a month’s time and Bima Sugam as platform may start functioning early next financial year (FY26).
Further, Panda said, the insurance sector is actively moving towards its future self with the implementation of various initiatives, including risk-based supervision framework, risk-based capital framework, and alignment with international financial reporting standards.
“These measures are now in advanced stages of implementation and they will bolster resilience, stability, and robustness and ensure risks are managed prudently in the face of evolving challenges,” Panda said.
[The Business Standard]
