Uniform disclosure norms for listed, unlisted cos

'IRDAI to ensure that fair treatment is given to customer'

Insurance sector regulator IRDAI is mulling to bring in uniform disclosure norms for both listed and unlisted companies.

“Listing brings more transparency to the working of companies. We thought we will encourage companies to bring in more transparency into their system,” Insurance Regulatory and Development Authority of India (IRDAI) Chairman T S Vijayan said. “We are also thinking even if the company is not listed, we are thinking whether whatever disclosure required by a listed company that can also be brought into an unlisted company,” he told reporters on the sidelines of CII Insurance Summit.

Talking about mergers and consolidation in the industry, he said, customer protection is the key and the regulator will ensure that fair treatment is given to them.

Merging together

“If two companies are merging together, it is nothing new in the Indian insurance industry, when LIC was formed many  companies merged into it,” he said.

“It is a natural process but we are very clear that customer protection is the key, whatever promises the companies have made to the customer is going to be the key. What reserves they are maintaining for the customers is the key. We will be keen to ensure fair treatment of customers,” he added.

Vijayan further said, there is a need to bring in appropriate products that will suit the customer need in the existing environment.

Huge market

“There is a huge market available and challenge before the industry. The opportunity will help to bring out the appropriate products, which can be decided with the help of technology, changes in the environment among others,” the chairman said.

He also pointed out that companies need to come up with innovative products which will suit the flexible income in order to address the huge protection gap in India.

“There need to be a flexibility in premium collection, maybe like collecting higher amount during Diwali. Companies have to come out with innovative ideas to address the huge protection gap in India,” he added.

He said, about 80-85% of the decision of buying insurance products is dominated by one particular gender and companies need to come up with such policies that will include equal participation of women.