IRDA to bring amalgamation norms for life insurers

 The Insurance Regulatory and Development Authority (IRDA) will shortly come out with regulations for amalgamation of life insurance companies, issue of capital by non-life insurers and also draft guidelines on design of life policies.

According to IRDA's annual report for the year 2011-12, issued on Friday, the regulator is working on laying down the regulations for amalgamation and transfer of life insurance companies. "The regulations propose to lay down the procedural framework for the same.

The regulatory framework for amalgamation and transfer of life insurance companies would be broadly on the same lines as in the case of non-life insurance  companies already notified by the Authority," the report states.

It proposes a three-stage process whereby IRDA will first give its 'in-principle' approval to the companies.

Following that, IRDA will grant its final approval to the proposed scheme of amalgamation upon confirmation that all regulatory compliances are in place.