Insurance Plans Reviews and Articles

M&A Guidelines Coming for Insurance Companies

Posted in insurance by kishosingh on July 11, 2009

Recently, IRDA (Insurance Regulatory and Development Authority announced that within two months M&A (Merger and Acquisitions) guidelines will be available for insurance companies.

J Hari Narayan who is the chairman of IRDA said to the reports of ET in a function which was organized by FICCI,

“It (guidelines) would be out soon. It is most likely to be finalized in the next couple of months. We have not taken any view we are examining it. We are examining the possibility.”

Currently, there is no any specific guideline for M&A in insurance sector over the country. Now, here are 22 life insurance firms and 21 non-life insurance companies in the country.

According to the Narayan, today non-life insurance products are taking large share. A data represents that more than 300 health insurance products have been offered by over 30 insurance companies which are both – general and life insurance.

Related to the insurance products there is big news which state that now car insurance will be comprehensive. Recently, the news came in light that if you want a motor insurance then you needn’t to go motor insurance companies because it will be now through any insurance companies.

The Economic Times published the news,

An official at the Insurance Regulatory and Development Authority (IRDA), while asking consumers to be more aware, says, “Dealers are neither agents, nor brokers’ insurers. What they quote is what they get from insurers. They can’t quote more or less than that.’’ Consumers should cross-check the price offered by various insurers, says the official. “Nobody should get carried away. No dealer can force you to get insurance.’’

Now, it is clear that in insurance sector a big change is going on. How much is effective the guidelines and car insurance feature, we will see in future. Still we are also looking some drastic changes in insurance products which may be useful for customers.

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