Insurers ask Irda to take time in recasting rules

Insurance Regulatory & Development Authority (Irda) has assured industry players that it will go slow in bringing regulatory changes from next year, a move that will bring some respite to the players, the sources added. Ever since the controversy over the regulation of Ulips was sorted out by the Government through an Ordinance in July, which was later made in to an Act this year, Irda has brought about a lot of changes in the life insurance sector. 

The regulator has also made unit linked products (Ulips) that give customers life-cover along with returns from investment in the capital markets, a long-term product so that it could be distinct from any other investment product. Sources said the insurance industry conveyed to the regulator that rapid pace of changes in the sector was hurting their business.

Irda has assured it that most of the big changes for the industry are already done, so 2011 will see somewhat less number of changes. Life insurance companies mopped up new premium of Rs 69,706 crore during April-October this year, up over 49 per cent from Rs 46,689 crore in the corresponding period last fiscal.