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Hyderabad, Aug. 26 The Insurance Regulatory and Development Authority (IRDA) has amended the regulations on investment of insurance companies.

The definition of investments in infrastructure by the insurance companies is now aligned with current norms prescribed by the Reserve Bank of India. This would “bring in better cohesion and facilitate smooth flow of funds into this important sector”, Mr C.R. Muralidharan, Member (Finance and Investments), IRDA said in a release.

The revised regulations also extend the exposure norms to investments of Unit Linked Insurance Plans (ULIPs) premium to enhance policy-holders’ protection and rationalise the norms for both private and public insurers.

The insurers could now adopt rating criteria as prescribed for categorising certain instruments as approved investments by the authority, including rated mortgage backed securities that can be reckoned towards the housing sector for the purpose of pattern of investment, the release said.

The aim of the changes is to bring more flexibility to the insurers, address certain aspects of risk management in ULIP business and investment management in general, among others, it added.

More Stories on : Insurance | Regulatory Bodies & Rulings

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