Insurance companies soon have to make a hoard of mandatory disclosures. The Insurance Regulatory and Development Authority (IRDA) is preparing the framework for corpoarate governance norms in the wake of Satyam issues, according to Tarun Bajaj, joint secretary, insurance & banking. "IRDA is evolving regulations to ensure fairer corporate governance in public and private insurance companies to best safe investments of lakhs of policy holders and stakeholders as none of these are listed and could be open to risks," he said at an ASSOCHAM Summit here.
A senior IRDA official confimed, saying, “We are preparing the framework of corporate governance norms for insurance companies. The draft will be ready in a week’s time.”
“For insurance companies, the profit and loss is not an indicator. So an important issue is how will they be valued when they begin to list soon. There will be disclosures from the perspective of an investor, policyholder and the regulator.” So far, insurance companies only disclose the new business premium to the IRDA on a monthly basis.
“Insurers would be required to disclose lapsation rate, persistency, expenses, claims, embedded value, etc.”