Role And Challenges In Insurance


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Role and Challenges of INDIAN Insurance Regulators

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Role And Challenges In Insurance

  1. 1. The Role and Challenges of Insurance regulators<br />Presented By-<br />ShrivarPandey<br />11/18/2009<br />Graduate School of Business & Administration<br />
  2. 2. 11/18/2009<br />Graduate School of Business & Administration<br />
  3. 3. Content<br />11/18/2009<br />Graduate School of Business & Administration<br />Insurance regulators<br />IRDA Act 1999<br />Role of regulators<br />Challenges of regulators<br />conclusion<br />
  4. 4. Insurance Regulators<br />“The role of an actuary in a regulator&apos;s office is two-fold - protecting the policyholders by ensuring the insurer&apos;s solvency, and equitably treating all policyholders,“<br />--says P. A. Balasubramanian, member (actuary), Insurance Regulatory and Development Authority (IRDA).<br />Insurance Act 1938.<br />Life insurance corporation act, 1956<br />Actuarial Society of India registered under Societies Registration Act 1860<br />Married women’s property Act, 1874<br />11/18/2009<br />Graduate School of Business & Administration<br />
  5. 5. Contd…<br />Consumer protection Act (COPA) 1986<br />OMBUDSMAN<br />Actuary mentioned in Regulation act.<br />Insurance Regulatory and Development Authority Act(IRDA), 1999<br />Actuarial Society of India by issue of guidance notes to its members.<br />11/18/2009<br />Graduate School of Business & Administration<br />
  6. 6. Insurance Regulatory and Development Authority Act, 1999<br />The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It is known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.<br />Mission of IRDA as stated in the act is &quot;to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.&quot; <br />The IRDA has replaced the controller of insurance.<br />11/18/2009<br />Graduate School of Business & Administration<br />
  7. 7. Role of Regulators <br />Protect the interest of holders of insurance policies.<br />Register insurance companies and also cancel their registration.<br />Monitor and certify the soundness of the terms of insurance business.<br />Make regulation relating to the conduct of business of insurance.<br />Inspect documents of insurers.<br />Appoint additional directors.<br />11/18/2009<br />Graduate School of Business & Administration<br />
  8. 8. Contd…<br />Issue directions<br />Take over the mgmt. of insurer and appoint administration.<br />Adjudicate on disputes between insurer and intermediaries.<br />To regulate, promote and ensure orderly growth of the insurance business in the country.<br />Control and regulation of the rates , advantage, terms and conditions that may be offered by insurers.<br />11/18/2009<br />Graduate School of Business & Administration<br />
  9. 9. Contd…<br />To report and maintain liaison with the MINISTRY OF FINANCE.<br />Giving proper direction and control to the insurance sector.<br />Resolve complaints.<br />11/18/2009<br />Graduate School of Business & Administration<br />
  10. 10. Challenges of regulators<br />Development of insurance sector.<br />Confidence of general public.<br />Insurance policy regulation (establishing market discipline).<br />Granting of license to new Insurers.<br />Foreign direct Investment (FDI).<br />Solvency Regulations<br />11/18/2009<br />Graduate School of Business & Administration<br />
  11. 11. Contd…<br />Market Practices-<br />Uniform system and Procedures ,<br /> To ensure transparency ,<br /> Deliberate hype about the returns.<br />Detariffication of General Insurance Product.<br />In the non-life area the availability of actuarial expertise itself is a challenge.<br />11/18/2009<br />Graduate School of Business & Administration<br />
  12. 12. Conclusion<br /> Development of insurance business in India, what has been done and achieved till now is only a sound beginning.<br /> With increasing complexity and novelty of business opportunities thrown open to more and more players in the insurance market.<br /> The regulatory body too need to gear up its administration and regulatory machinery to have in place more structured, systematic and effective approach to successfully find solution to more and more challenges and issues.<br />11/18/2009<br />Graduate School of Business & Administration<br />
  13. 13. Thank you for your time....<br />11/18/2009<br />Graduate School of Business & Administration<br />