Mumbai: IRDA is likely to come out with IPO guidelines for life insurance companies by the end of this month, according to media reports quoting J Harinarayan who spoke to reporters on sidelines of FICCI National Conference on Insurance.
“They (Life insurers companies) will be completing 10 years (in business) later this year. Our IPO guidelines must be in place before that... by the end of this month," J Harinarayan was quoted in newspapers.
HDFC Life Insurance has completed ten years of minimum operations stipulated by SEBI to tap the capital market while Reliance Life is yet to complete ten years. Reliance Life had deferred its IPO plans due to the regulatory requirements. The IRDA will only allow to public to those companies which have completed ten years of operations with three years of successive profits.
Harinarayan also announced that IRDA is considering finalizing a hike in motor insurance premiums. According to the draft exposure, the hike could range from 10% to 80% in third party motor insurance. Media reports peg the total losses of motor insurers to the tune of Rs 3,500 crore in the current fiscal.
Currently 23 companies are offering life insurance policies, including LIC.