The Insurance Regulatory and Development Authority (IRDA) is in discussion with the Securities and Exchange Board of India (SEBI) regarding guidelines to be followed for the initial public offer (IPO) by an insurance company, IRDA Chairman J. Hari Narayan said here on Friday.
Speaking to media persons on the sidelines of a graduation ceremony of the second batch of the executive programme in insurance and risk management, Mr. Hai Narayan said one company had shown interest in the IPO.
Though SEBI is the market regulator, the insurance industry had its own peculiarities. Therefore, the IRDA and SEBI were engaged in discussion to evolve guidelines, he said.
On the recommendations of the Swarup Committee to reduce commission to insurance agents, Mr. Hari Narayan felt that its proposals were not well-founded. He said the health of the insurance industry was satisfactory.
Giving a positive outlook for the general insurance industry and ICICI Prudential Life Insurance Company, its Managing Director and CEO V. Vaidyanathan said that with the world coming out of recession, sentiment improving and India’s growth trajectory again in the path of 8 to 9 per cent from 6.5 per cent, the company’s second half of the current fiscal might see a growth of 45 per cent over that of the first half.
Earlier, the IRDA Chairman gave away certificates to the students who graduated from the programme. Mr. Hari Narayan said transparency, accuracy and access to information were essential to address the concerns of customers/investors and prepare them to detect ‘bubble’ phenomenon.
The previous bubble was due to artificial hiking of property prices. At present, with the dollar interest rate frozen to zero and the value of the dollar dropping in the U.S. market, questions were being raised whether this would lead to a new bubble. “We should be sensitive to this,” he said.
Institute of Insurance and Risk Management (IIRM) Managing Director Vepa Kamesam said the curriculum was developed by both ICICI Prudential Life and the institute.