The Insurance Regulatory and Development Authority of India (IRDAI) has not fixed any timeline for listing of insurance companies, according to a top executive.
“We have not fixed any timeline for the final regulations on listing of insurance companies. I believe talks are also on for looking at listing of all the general insurance companies,” IRDAI Chairman T S Vijayan said while speaking on the sidelines of the Assocham Global Insurance Summit.
“In the previous Act itself there was a provision for listing, this was changed, we wanted to have a discussion on this subject, so we brought out a paper and companies have expressed that thing, so let us see how it goes forward,” Vijayan said.
He added that considering about five months are still left in this financial year, listing of more PSU insurance companies was possible. “It is possible but I am not too sure, we have not got any official paper, it is in the discussion stage but nobody has approached us,” Vijayan said.
“IRDAI has not fixed any time frame for the final regulations on listing. I believe that discussions are going on how to list general insurance companies, all five to six of them,” Vijayan added.
ICICI Prudential Life Insurance became the first life insurance company to tap the capital market after IRDAI announced the listing guidelines for insurance companies. The company is planning to raise around Rs 6,000 crore at the higher end of its price band.
According to Vijayan, there is also a possibility of five to six new players entering the Indian reinsurance market as early as January 2017. “About five to six companies have come and I think by January 2017, there should be some players in this market, we will be taking a decision in October in the next authority meeting, then they have to bring capital and start working at it,” Vijayan said.
He also said that IRDAI would finalise the regulations pertaining to payment of commission or remuneration to insurance agents and intermediaries in October. “I believe in next board/authority meeting, which will be in October, we will be able to finalise,” Vijayan said.
We discuss with everyone, we bring the draft, people give their feedback on it and we again discuss that thing. Then it is taken to Insurance Advisory Committee, looking at suggestions, they suggest it and then it goes to the authority, Vijayan added.