The Hindu Business Line : ‘Insurers’ solvency margins up to the mark in 2006-07’

Hyderabad, April 11 In what can be seen as an indicator of the industry’s health, all the life and non-life insurers have successfully maintained required solvency margins in the year 2006-07, in line with the norms of the Insurance Regulatory and Development Authority (IRDA).

Solvency is having enough money to meet all pecuniary liabilities and the protection of policy holders’ interest is one of the principal concerns underlying the solvency regulation of IRDA.

According to the recently released IRDA’s annual report 2006-07, all the 16 life insurers had complied with the stipulated requirement of a solvency ratio of 1.5.

While LIC had improved its solvency margin ratio to 1.5 from 1.3 in 2006, the solvency ratios of eight other insurers in 2006-07 were lower than those of 2005-06.

In the non-life segment, all the four public sector and eight private sector insurers had met the stipulated solvency ratio of 1.5, including National Insurance, which improved its position to 1.76 from 1.08 as on March 31, 2006, the annual report said.

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