IRDAI Says not keen on Making Listing by Insurers Mandatory

Insurance regulator Irdai today said it is yet to make listing of insurance companies mandatory as the industry is not ready for it. As of now, ICICI Prudential Life is the only listed insurer, while New India and GIC Re are likely to be the first two state-owned insurance firms to get listed some time soon after the government recently said it wanted all the state-run non-life players to merge and be publicly traded. The regulator had come out with a discussion paper on mandatory listing of insurance companies which have been in operations for 10 years, last August. "We have not made it mandatory as yet. It's still in the form of a draft," Irdai chairman TS Vijayan told reporters while speaking on the sidelines of an Insurance Brokers Association event here. "The industry is not too happy making it compulsory. So for the time being, it will not be mandatory," he added.

As of now, there are 55 insurance firms in the country, of which 24 are in the life insurance business and the rest 31 are non-life players. Meanwhile, after suggesting a steep hike in third party motor premium, the regulator today said there is room for a premium hike in the group health insurance segment as well to make the industry more viable. Yesterday, Vijayan had said "Irdai has already come up with an exposure draft on this for which we are seeking opinion from various stakeholders. Hike in the third-party motor premium is inevitable. The quantum of the increase depends on what feedback we receive from the stakeholders." PTI KD BEN RMT .