Irda for more companies to participate in pension market

Irda: More companies to participate in pension market
The country's Insurance Regulator, Insurance Regulatory and Development Authority (IRDA) believes, that there is ample risk involved in one company being the dominant player in the country's pension market. India's largest company, State owned Life Insurance Corporation of India accounts for over 90 percent of India's pension market.

The regulator believes that such domination could be harmful to the entire insurance industry as well as customers, and all insurance players must be encouraged to contribute to the Indian pension market.

The IRDA wants the country's pension funds to provide life annuity schemes to the customers .It also wants insurance firms that offer pension plans to customers to have a capital guarantee in order to lend safety to the principal amount invested .At present ,pension schemes contribute nearly 30 percent to the Indian life insurance company's total insurance revenue.

The regulator is also mulling to set up an exchange like mechanism for the purpose of re -insurance, which will lend greater transparency to operations.

Read more about: irda, capital market, insurance
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