Insurance Regulatory and Development Authority of India (Irdai) said the move is part of promoting ease of doing business for insurance companies and it has been constantly striving to reduce the compliance burden for all the regulated entities.
Towards this endeavour, the health insurance returns being filed by the insurance companies have been significantly reduced, it said in a circular.
“Now, the general and health insurers will have to file 8 returns and life insurers will be filing 3 returns in place of 17 returns being filed currently. This step will further help insurers in focusing on their business rather than a plethora of compliances and in turn help in increasing the insurance penetration in country,” it said.
These revised reporting norms will be applicable with immediate effect.
In India, insurers are mandated to submit various returns to the regulator, including financial statements on annual basis, valuation of assets and liabilities as well as solvency margin and actuarial report.
Among others, reporting of financial condition for life insurance business; Incurred But Not Reported (IBNR) claims in case of general insurance business; reinsurance plans on an annual basis; and monthly statement on underwriting of large risks in case of general insurance companies are also mandated.
They are also required to report about the details of capital market exposure on a monthly basis; investment policy, quarterly and annual returns on investments.
The insurance regulator is carrying out a series of reforms in the sector to promote ease of doing business for the insurers.
In July this year, minister of state for finance Bhagwat Karad said in Parliament that Irdai has formed several working groups in order to make a comprehensive review of the existing regulations under the aegis of Life Insurance Council and General Insurance Council.
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