Public float guidelines for life insurance companies will only be ready by February, according to the Insurance Regulatory and Development Authority Chairman, Mr J Hari Narayan.
“Our regulation for initial public offers of life insurance companies should be ready in another two to three weeks,” Mr Hari Narayan told reporters at the sidelines of the Insurance Brokers Association of India summit.
He added that non-life insurance companies will still have to wait a few months to tap into the capital markets as IRDA is still in the process of making a formal proposal to the markets regulator, the Securities and Exchange Board of India (SEBI).
“For IPOs of non-life insurance companies, we are still to make a formal proposal to SEBI. The proposal is ready but the calculation of economic capital is taking a little time. Once that is done we will go forward,” he added.
What cos require
The IPO guidelines compiled by IRDA for life insurance companies require companies to be in operation for the last 10 years. Last October, SEBI had approved life insurance companies to issue IPOs. According to the present guidelines, SEBI requires a three-year track record of profit for a company to float a public issue.
Mr Hair Narayan also added that health insurance policy holders would soon have the choice to switch over to another company with the same conditions, according to the insurers' portability option to be formulated by IRDA next month.
“Draft guidelines on portability of health insurance policies will be issued by February-end,” the IRDA Chairman said. At present, there is portability option on auto insurance policies.
“Under portability, the financial bonuses, pre-existing disease requirement will also get carry forward,” he added.
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