On 1st September 2020, Insurance Regulatory and Development Authority of India (IRDAI) formed a 6-member working group headed by Dinesh Pant, appointed actuary of Life Insurance Corporation(LIC) to scrutinize various aspects for allowing the life insurance companies to offer index linked products.
Background:
i.The regulations of IRDAI does not permit the insurance companies to offer or sell the index linked products.
ii.The insurers requested IRDAI to permit them to sell the index linked products.
iii.Considering the request of the life insurers, the working group has been constituted to study the aspects of index linked products in the life insurance segment.
About the Working Group:
Members:
The working group of 6 members headed by Dinesh Pant, includes members from private insurers and IRDAI,
i.Anil Kumar Singh, appointed actuary, Aditya Birla Sun Life Insurance
ii.Jose C John, appointed actuary, Max Life Insurance
iii.Manish Kumar, chief investment officer, ICICI Prudential Life Insurance
iv.Y Srinivasa Rao, DGM, investment department, IRDAI
v.DNK LNK Chakravarthi, AGM, actuarial department, IRDAI
Roles:
i.The working group will submit the report within 2 months.
ii.The group will examine the needs of the products in India, how they meet the needs and interest of the customers relative to the traditional saving products.
iii.They will examine the index linked products that are available for sale in Indian market in terms of product structure, ease of customer understanding and administrative processes, sales volumes and any other relevant matters.
Other terms of the group:
i.The working group will study the practices of the other jurisdictions associated with the Index Linked Products structure and operations.
ii.The group will make recommendations on specific aspects like product structure and its pricing.
iii.The group will also suggest any possible amendments to the current regulations of IRDAI like product and investment regulations.
iv.The group may invite experts from outside for discussion on the basis of needs.
Recent Related News:
i.IRDAI Constitutes 9-member Working Group Headed by Suresh Mathur to Look into the Possibility of Forming ‘Pandemic Risk Pool’.
ii.IRDAI Forms 9-Member Working Group Headed by Anjan Dey to Look Into Drone Insurance.
About IRDAI:
Chairman– Dr. Subhash C. Khuntia
Headquarters– Hyderabad, Telangana
