04/12/2023Graduate School of Business & Administration

The Role and Challenges of Insurance regulators

Presented By-

Shrivar Pandey

04/12/2023 Graduate School of Business & Administration

04/12/2023Graduate School of Business & Administration

Content

Insurance regulatorsIRDA Act 1999Role of regulatorsChallenges of regulatorsconclusion

04/12/2023Graduate School of Business & Administration

Insurance Regulators

“The role of an actuary in a regulator's office is two-fold - protecting the policyholders by ensuring the insurer's solvency, and equitably treating all policyholders,“

--says P. A. Balasubramanian, member (actuary), Insurance Regulatory and Development Authority (IRDA).

Insurance Act 1938.Life insurance corporation act, 1956Actuarial Society of India registered under

Societies Registration Act 1860Married women’s property Act, 1874

04/12/2023Graduate School of Business & Administration

Contd…

Consumer protection Act (COPA) 1986OMBUDSMANActuary mentioned in Regulation act.Insurance Regulatory and Development

Authority Act(IRDA), 1999Actuarial Society of India by issue of

guidance notes to its members.

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Insurance Regulatory and Development Authority Act, 1999

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.

Mission of IRDA as stated in the act is "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."

The IRDA has replaced the controller of insurance.

04/12/2023Graduate School of Business & Administration

Role of Regulators

Protect the interest of holders of insurance policies.

Register insurance companies and also cancel their registration.

Monitor and certify the soundness of the terms of insurance business.

Make regulation relating to the conduct of business of insurance.

Inspect documents of insurers.Appoint additional directors.

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Contd…

Issue directionsTake over the mgmt. of insurer and appoint

administration.Adjudicate on disputes between insurer and

intermediaries.To regulate, promote and ensure orderly

growth of the insurance business in the country.

Control and regulation of the rates , advantage, terms and conditions that may be offered by insurers.

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Contd…

To report and maintain liaison with the MINISTRY OF FINANCE.

Giving proper direction and control to the insurance sector.

Resolve complaints.

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Challenges of regulators

Development of insurance sector.Confidence of general public.Insurance policy regulation (establishing

market discipline).Granting of license to new Insurers.Foreign direct Investment (FDI).Solvency Regulations

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Contd…

Market Practices- Uniform system and Procedures , To ensure transparency , Deliberate hype about the returns.Detariffication of General Insurance Product.In the non-life area the availability of

actuarial expertise itself is a challenge.

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Conclusion

Development of insurance business in India, what has been done and achieved till now is only a sound beginning.

With increasing complexity and novelty of business opportunities thrown open to more and more players in the insurance market.

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.

04/12/2023Graduate School of Business & Administration

Thank you for your time....