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Kolkata, April 9 The Insurance Regulatory and Development Authority (IRDA) is mulling a separate set of policies and regulations for selling insurance products through the bancassurance route, according to Mr R. Kannan, Member (Actuary), IRDA.

Bancassurance is a mode of distribution of insurance policies through banks.

“The idea is to push specialised insurance products through banks at affordable premiums,” Mr Kannan said while interacting with the press here on Thursday at a meeting organised by the Merchants’ Chamber of Commerce.

He, however, did not give any timeframe for the new regulations to come up, as it was still at a nascent stage. He indicated that the post offices too could be used as distribution channels for increasing the penetration level.

As part of the proposed regulations, the insurance companies might be asked to frame separate simpler policies for sale exclusively through banks, he pointed out. “The product may be a different one to cater to over-the-counter transactions in banks,” he said. The policy document too would be simpler to ease underwriting procedures, he added.

Mr Kannan said that he was currently heading a committee of Institute of Actuaries entrusted with the task of formulating norms for valuations of insurance companies.

The committee would probably submit its report in May. The regulator was expected to come up with guidelines on the issue of portability of insurance policies within the next three months, he said.

IRDA was also in favour of imparting more powers to the Life Insurance Council and General Insurance Council in data dissemination and other transparency issues of insurers, he said and indicated that the study on expenses of insurance companies would be ready soon.

“The proportion of total expenses of insurers as against premium has increased from 22 per cent to 29 per cent over the last four-five years. This, it is feared, will eventually affect net margins and solvency ratios of insurance companies,” Mr Kannan added.

More Stories on : Regulatory Bodies & Rulings | Insurance | Banking

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