Further IRDAI has decided that the FRBs and Lloyd’s India need not publish the half yearly and annual Revenue Account, Profit & Loss Account, Balance Sheet and Analytical Ratios etc. in the newspapers
Hyderabad:
Providing compliance relief, the insurance regulator IRDAI has decided to discontinue the existing mandatory requirement for the general insurers, foreign reinsurance branches (FRBs) and Lloyd where they have to upload technical details of their underwriting performance,as part of the Form NL 40 as prescribed under the Public Disclosures, on their respective websites.
“However, the re/Insurers are advised to file the said format to the authority by e-mail at finance-nonlife@irdai.gov.in,’’ said the IRDAI on Thursday.
Further IRDAI has decided that the FRBs and Lloyd’s India need not publish the half yearly and annual Revenue Account, Profit & Loss Account, Balance Sheet and Analytical Ratios etc. in the newspapers.
They may continue to publish a true and accurate abstract of the various returns for the purpose of publicity on a voluntary basis pursuant to provisions of the Insurance Act, 1938, said the IRDAI.
FRBs and Lloyd’s India provide reinsurance support to the direct insurers and the insurers do conduct their due diligence on the FRBs while entering reinsurance contracts with them. The necessary information on financials is also made available through Public Disclosures on the respective website of the FRBs, said the IRDAI.
Stewardship Returns and Public Disclosure by FRB and Lloyd’s India:
Traditionally, the FRBs and Lloyd’s India do not invest in equity instruments and they mainly invest in G Sec and Debt markets. Based on the investment exposures of the Branches of Foreign Reinsurers and Llyod’s India are granted following exemptions –
The entities, whose investment policy do not permit the investment in equity are exempted from the application of Common Stewardship Code, disclosure
The entities, whose investment policy allows equity investment but have not made any investment in equity – the Code is applicable. However, a NIL return will be a sufficient compliance for the same.