What are the regulatory issues that IRDA is currently looking at in respect of the non-life sector?
Some of the areas that require greater attention are rural, social and health sectors. The penetration in these sectors is still low given the huge potential and IRDA would encourage the players to exploit it. The IRDA has notified the micro-insurance regulations, which should enable the insurers to increase penetration in the forthcoming year. The IRDA has already announced the roadmap for detariffing from 31st December, 2006. Milestones have been laid down for companies to achieve as a prelude to detariffing. The IRDA will be monitoring the progress by the companies to ensure that they adhere to the time frame for de-tariffing. IRDA seems to be micro-managing the sector – for instance, the detariff roadmap states that underwriting officials should not report to marketing officials. Shouldn’t companies be free to decide on reporting structures? It is incorrect to state that IRDA is getting into micro-managing the sector. The role of IRDA is to regulate and develop the insurance indust
