Kolkata, June 12: The Insurance Regulatory and Development Authority of India (IRDAI) has not but taken a choice on permitting insurers to spend money on the extra tier-1 (AT-1) bonds due to risks associated with the instrument, in accordance with an IRDAI official.
“There’s a debate and we have now not but agreed. As of now, we aren’t allowing them (insurers) to take part,” mentioned IRDAI‘s Member (Finance and Funding) V.R. Iyer, when requested whether or not the regulator will enable insurers to put money into AT-1 bonds or not.
There’s threat related to the instrument, she mentioned.
In the meantime, knowledgeable sources stated the IRDAI board is more likely to meet on June 30 and should accord the ultimate approval to some international traders to arrange branches in India.
“The regulator has obtained six functions from international reinsurers to arrange branches and as much as three candidates might get the ultimate approval on this section,” the sources mentioned.
The UK-based Lloyds, Germany’s Munich Re and Hannover Re, Swiss Re from Switzerland wish to foray into Indian market.
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