Title of Presentation

Role of IRDA in Financial markets

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1AboutInsurance Regulatory & Development Authority is the controlling and regulatory apex body in the country for insurance sector Its chairman and members are appointed by Government of India IRDAs HQ is located at Hyderabad

Mission

Objectives of IRDATo promote orderly growth ofinsurance industryin the country, including registration of insurance companiesEnsure continued financial soundness and solvencyRegulate insurance and reinsurance companiesEliminate dishonest and unhealthy competitionInsurance business opens up to private sector thus ending the monopoly of LIC

Composition of Authority under IRDA Act, 1999

The Authority is a ten member team consisting of (a) a Chairman (b) five whole-time members (c) four part-time membersAll appointed by the Government

Market Scenario before IRDA Act 1999 Life insurance company 1. LIC of India General insurance companies 1.National insurance company ltd 2.New India assurance company ltd 3.Oriental insurance company ltd 4.United India insurance company ltd

Market Scenario after IRDA Act 1999

Stage of Liberalization, Privatization & Globalization (Competition between public sector & private sector)

Fundamentals of an ideal regulatory environmentProtection of the consumerPromotion of the industryCompetitive neutralityTransparencyCost effectiveness AccountabilityFlexibility

History

Types of Insurance

Insurance companies in IndiaLIFE:The Oriental Insurance Co. LtdNational Insurance Co. LtdUnited India Insurance Co Ltd

GENERAL:IFFCO Tokio General Insurance Co LtdNational Insurance Co. LtdUnited India Insurance Co Ltd

REINSURANCE:General Insurance Corporation of India

IRDA: Latest news and developmentsOnline application: IRDA has introduced an online application that enables the user to compare coverage, exclusions etc. under non life insurance products currently being sold by different insurers in the marketServicing of Life Insurance Orphan Policies: To Promote persistency of insurance policies, the Authority has issued guidelines on servicing of life insurance policiesWeb enabled facility: IRDA has introduced a web enabled facility for the general public to provide them access to data relating to insurance status of motor vehicles involved in accident

IRDA AWARNESS CAMPAIGN Bima BemisaalBima Bemisaal is the brand name for IRDA's insurance awareness campaign.It is a consumer education initiative and has the tagline "Promoting Insurance. Protecting InsuredIt educates policyholders about their rights and obligations and informs them about the complaints resolution methods available to them

Jago Grahak Jago

IRDA has participated in the JAGO GRAHAK JAGO programme of Ministry of Consumer Affairs, Food and Public Distribution, Government of India, which aims to educate consumers.IRDA conducts a series of Annual Seminars on Policyholder Protection. The seminar consisted of three sessions:Understanding Insurance-A Consumer ConcernPreventing Mis-selling in Life Insurance Tying and Bundling Insurance with other goods and services

Challenges facing IRDA - LICDefying its on normsThe insurance regulator prescribed a 10% limit on equity holding for all life insurance companiesBut , LIC acts independently

Challenges facing IRDA Norms

Challenges facing IRDA - HealthInsurance CompaniesUniformity of ratesAcross all sectors

Service ProvidersDifferential Rates Entry of BerkshireIt is a licensed corporate agent of Bajaj Allianz General Insurance Company Limited It sells products directly to retail consumers through the internet and through call centersNo restriction on the amount of capital and proportion of FDI if they operate through this route Since Berkshire Hathaway cannot operate in India as a full-fledged foreign entity, it has entered the Indian market as a corporate agent

ConclusionClearer role definition of IRDASelective application of rules should be stoppedRein in LICCap on the foreign investment in the sector should be increased to 49%

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