IRDAI REGULATORY CHANGES
From digital to doorstep, insurtech startups take the offline route, will it work?
Indian insurtech startups, initially focused on online sales, are now rapidly expanding their networks of physical agents. This shift, driven by competition and the pursuit of market share, raises concerns about commission-driven growth, sustainability, and potential regulatory scrutiny. The industry faces challenges balancing growth with profitability and navigating the evolving insurance landscape.
TRAI extends deadline of traceability mandate for commercial messages
Trai has extended the deadline to December 11 for implementing the traceability mandate for commercial messages, providing more time to telcos and telemarketers to finalize technical details. This move aims to avoid message delivery disruptions. Trai emphasizes the necessity of the new regulations, ensuring the traceability of commercial messages to curb spam.
LIC shares climb over 5% after acquisition clarification; well-positioned for bancassurance regulatory shifts
LIC share Price: LIC shares surged 5.1% after clarifying talks to acquire a stake in ManipalCigna Health Insurance, amid growing concerns over bancassurance regulatory changes and LIC's strong market position.
Will IPRU and LIC outperform amid regulatory noise? Prayesh Jain answers
?So, amongst the listed players, obviously three of them have a very high share above 50%. IPRU has around 30% amongst in retail APE and LIC has a relatively lesser share. So, until the noise continues, possibly these are the couple of stocks probably which could outperform should be IPRU and LIC.
India plans insurance law changes for unified licence, hiking FDI limit, sources say
The govt is poised to revamp its insurance laws, potentially allowing insurers a single license to operate across life, general, and health insurance. This move, coupled with a proposed increase in foreign direct investment to 100%, aims to boost the insurance sector and increase penetration, currently at a modest 3.8% of GDP.
India plans major insurance shake-up this winter as it may open doors to 100% FDI
100% FDI in Insurance: The Indian government is poised to permit 100% foreign direct investment in the insurance sector, aiming to attract global players and boost insurance coverage. The move, part of the upcoming Insurance Amendment Bill, will also allow agents to sell policies from multiple companies, enhancing market efficiency and consumer choice.
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LIC policy restructuring: Congress MP Manickam Tagore raises concern, writes to FM Sitharaman
Congress MP Manickam Tagore has written to Finance Minister Nirmala Sitharaman expressing concerns about recent LIC policy changes. Tagore argues that the changes negatively impact agents and policyholders, particularly in rural and low-income communities, by increasing premiums, reducing commissions, and lowering bonus rates.
Irdai proposes to amend regulatory sandbox norms
The Insurance Regulatory and Development Authority of India (Irdai) has proposed changes to its regulatory sandbox, aiming to shift from a rule-based to a principle-based approach. This move seeks to encourage innovation and the introduction of new ideas within the insurance sector. Public comments on the proposed amendments are being sought until November 25th.
Irdai red tape, archaic processes led to health tech startup Kenko¡¯s fall: Cofounder Aniruddha Sen alleges
Kenko, founded in 2019, was trying to build a subscription-based health insurance product to protect its users against hospitalisation and outdoor treatment. The company, started by Sen and Dhiraj Goel, both seasoned insurance industry professionals, had raised around $13.7 million from large investors like Peak XV Partners, Orios Venture Partners and Beenext.
Long-term investors should focus on structural trends over short-term volatility: Ravi Dharamshi
?So, from the peak to correct around 15% kinds is I would say, but beyond that I would say then they start looking attractive again from a three to five years perspective because none of the problems are really balance sheet oriented problems, they are all more P&L related problems and more valuation issues.
Increase in surrender value to reinforce customers' faith in life insurance industry: Kotak Life Insurance MD & CEO
People are now buying life insurance for protection, and the increase in surrender value is unlikely to impact the persistency ratio, Mahesh Balasubramanian tells Riju Mehta.
Regulatory changes to provide necessary push to surety bonds business, say experts
Regulatory changes and standardization are set to boost surety bonds introduced in 2022 by general insurance companies. These bonds will support India's infrastructure development, reduce reliance on bank guarantees, and allow banks to lend to other sectors. Legal and regulatory reforms are crucial for providing insurers equal recourse under the Insolvency and Bankruptcy Code.
National Insurance Company picks out assets to sell amid poor solvency
National Insurance Company faces an ?8,000 crore solvency shortfall, with a negative 0.49% solvency margin against the regulatory minimum of 1.5%. The insurer plans to address the gap by liquidating key assets, including stakes in Agriculture Insurance Company and India International Insurance Singapore, pending necessary approvals.
Patients, insurers feel the pain as hospitals take to 'surge pricing'
Hospitals in India introduce additional charges, such as disinfection fees and peak operation theatre charges, leading to a 20% rise in medical costs. Insurers struggle as previously bundled services are unbundled, causing unpredictability in healthcare expenses and potential increases in insurance premiums.
Life insurance rule change: From October 1, 2024, you will get higher refund when you surrender your life insurance policy
Policyholders exiting traditional life insurance get more money back starting October 1, 2024. Irdai has asked the insurance companies to offer a higher special surrender value (SSV) for traditional endowment policies from October 1, 2024. The new 'special surrender value' rule mandates higher refunds, offering flexibility to switch plans. ET Wealth Online decodes the new special surrender value rule and how it impacts life insurance policyholders from next month.
Premium may rise, agent commission could decline as revised surrender value kicks in from Tuesday
Insurance premiums may rise or agent commissions might be reduced due to new IRDAI guidelines for revised surrender values aimed at providing better returns to early-exit policyholders. Insurers are adapting to meet these norms, potentially causing volatility in premium costs.
IRDAI prohibits insurers from collecting premium before policy approval
The Insurance Regulatory and Development Authority of India (IRDAI) has introduced new rules for life and health insurance premiums. Insurers can no longer collect initial premiums with the proposal form unless the policy is issued immediately. This change aims to prevent idle customer money and ensure transparency in the insurance process.
Life insurers tweak products, incentives to protect margins after IRDAI's new surrender rules
Private life insurers in India have strategized to adhere to new IRDAI regulations requiring surrender value from the first year on non-participating policies. Companies like HDFC Life, ICICI Prudential Life, and SBI Life are adjusting their commission structures and product mixes to protect margins and maintain growth despite the regulatory changes.
Higher refund on premature exit from life insurance policy as IRDAI introduces new surrender value rule; check how much you will get
Life Insurance Policy Surrender Value Rule Changes: To curb mis-selling of life insurance plans, IRDAI has introduced a higher special surrender value for traditional endowment policies. Even if a policyholder exits a life insurance policy after the first year, he would get a part of his premium back if he has paid it. Till now, there has been no refund on exiting the policy in the first year. How much money will you get back if you prematurely exit your life insurance policy? Check calculation here.
Motor insurance rule change: No arbitrary claim rejection, quicker claim settlement, pay as you drive option must, says IRDAI
Motor Insurance New Rules by IRDAI: The Insurance Regulatory and Development Authority of India (IRDAI) has updated the master circular clarifying important rules for motor insurance policyholders. The regulator has proposed the implementation of strict timelines for claim settlements of auto insurance policyholders. It is a crucial step towards improving efficiency and customer satisfaction. Another key change is the introduction of a customer information sheet (CIS) for auto insurance policies to enhance customer awareness.
NHCX, a single portal for all health insurance claims soon: what is the claims process, benefits to policyholders
The digital platform, to be launched in 2-3 months, will speed up and standardise claim settlement process, leading to cost benefits for the insured.
Health insurance premiums can be reduced if you don¡¯t make a claim, policy cancellations to be less costly and more: 5 rule changes
Health insurance rule changes: To make health insurance policy more inclusive, flexible and customer-friendly, IRDAI has recently released a master circular on health insurance business. The regulator introduces new measures regarding cancellation charges, standardising no-claim bonus, and increasing claim settlement transparency. ET Wealth Online explores how these regulations empower policyholders and improve their health insurance experience.
Insurers worried over surrender value rule
Life insurance companies have expressed concerns over proposed regulatory changes that would offer higher surrender values to policyholders the first year itself. Industry representatives have sent their feedback saying that these reforms could severely impact profitability and policy persistence.
Health insurance claim rule change: Cashless claims must be cleared in 3 hours; insurer to pay hospital charges for delay in discharge, says IRDAI
Health insurance: The Insurance Regulatory and Development Authority of India (IRDAI) has released a master circular to streamline health insurance claim process. Previously, delays in claim approvals forced patients to stay in hospitals longer. Now, insurers have three hours to approve cashless discharge requests. Additionally, insurers will be liable for extra hospital charges due to delays.
Health insurance new rule: You will get full coverage during grace period even if premium is unpaid, mandates IRDAI
New health insurance rule: To bring some much-needed relief to health insurance policyholders, Insurance Regulatory and Development Authority of India (IRDAI) has released a master circular on Health Insurance Business. Typically, most health insurance plans offer a grace period, a buffer to pay premium of your insurance policy. Earlier, health insurance grace period offered a buffer to pay premiums but no coverage for claims during that time. IRDAI's new rule mandates coverage during the grace period. What changes for the health insurance policyholders. How is this new move going to impact them? Read here to find out.
IRDAI introduces new corporate governance regulations for insurers
The Insurance Regulatory and Development Authority of India (IRDAI) has mandated that insurance companies must now seek prior approval for appointing their Board Chairperson. Current Chairpersons must comply with this regulation by March 31, 2026, or by the end of their terms, whichever comes first. IRDAI has introduced new corporate governance rules to prevent conflicts of interest in key management roles and to ensure that no individual holds multiple significant positions.
IRDAI relaxes procedural norms on expense of management, share transfer
IRDAI introduces new Master Circular, streamlining application procedures, ESOPs compliance, share transfers, and specifying timelines for prior approval and amalgamation guidelines. Reporting for capital forms and lock-in periods clarified.
Hindujas get Irdai nod for buying Reliance Capital business; conditions apply
According to sources familiar with the situation, the insurance regulator has granted approval for the Hinduja Group to acquire Reliance Capital's life, general, and health insurance businesses, with the condition that shares of the companies will not be pledged. However, the deal is still pending approval from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
Digit to go public on May 15, looking to raise Rs 1,125 crore
Digit's upcoming IPO on May 15 aims to raise Rs 1,125 crore, delayed by Sebi compliance issues. Valued at $4 billion, Digit faced fines from IRDAI. With a new CEO, Digit is poised to enter the market.
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