With life insurers seeking permission to launch index-linked policies, the Insurance Regulatory and Development Authority of India (IRDAI) has set up a working group to look at the issue and give its recommendations in two months.
The six-member group will be led by Dinesh Pant, Appointed Actuary, Life Insurance Corporation of India (LIC).
The other members are: Anil Kumar Singh, Appointed Actuary, Birla Sun Life Insurance Company Ltd, Jose C John, Appointed Actuary, Max Life Insurance, Manish Kumar, Chief Investment Officer, ICICI Prudential Life Insurance Company Ltd, Y.Srinivasa Rao, Deputy General Manager, Investment Department, IRDAI and D.N.K. L.N.K. Chakravarthi, Assistant General Manager, Actuarial Department, IRDAI.
The group will examine the need for index-linked products in India with reference to the availability of various indexes and how it will better serve the needs and interests of customers relative to traditional savings products.
It will also examine index-linked products, which were earlier available for sale in the Indian market, in terms of product structure, ease of customer understanding and administrative process, sales volumes and other related matters.
The group will also study the practices in various other markets and finally provide recommendations on specific aspects like product structure, its pricing and reserving.
It would also recommend possible amendments to current products and investment regulations.