IRDA studying merger, buy plans of two non-life insurance cos

The Insurance Regulatory and Development Authority is examining merger and acquisition proposals from two non-life companies, according to the IRDA Chairman, Mr J. Hari Narayan.
Speaking to newspersons after formally launching an SMS-based customer grievance redress system of SBI Life Insurance here on Tuesday, Mr Hari Narayan said the proposals, once examined, “might serve as a blueprint” for guidelines on mergers and acquisitions in non-life sector.
He, however, declined to provide further details on the proposals.
According to sources, the two companies in question are Reliance General Insurance and Royal Sundaram General Insurance Company. At a CII Insurance Conference in Mumbai two months ago, the IRDA Chairman had said that the regulator was in discussion with the companies about some issues regarding the merger. He had said then that M & A norms would be announced soon and that a committee was studying the issue.In the life-sector there was no need for specific guidelines as there was a provision in the existing regulatory framework, he said.
On the impact of new Unit-Linked Insurance Plans (ULIPS), which came into force from September 1, the IRDA Chairman said the Authority would review the industry scenario after the current financial year.
“September this year was not as bad as September last year but the overall impact will be known only after the end of the year,'' he said.On the proposed reforms in bancassurance, Mr Hari Narayan said a decision would be taken after submission of report by a panel constituted for the purpose.
Speaking earlier, Mr M. N. Rao, Managing Director and Chief Executive Officer of SBI Life, said the company was “hopeful” of maintaining 40 per cent growth in the new business premium (which was registered in the first half of current fiscal) during the second half as well.
“We have opened 138 branches and added 1,200 new staff in the last six months which will also bring business growth, among others,'' he said.The new customer grievance redress system — ‘SMS–SOLVE' — was inspired by a similar services successfully being implemented by SBI's Andhra Pradesh Circle.
The aggrieved customers should send ‘SOLVE' as an SMS to 56161 which will be immediately attended to by the staff at a central call centre in Mumbai.
On IPO plans, Mr R. Sridharan, Managing Director & Group Executive (Associates & Subsidiaries, SBI, said a decision would be taken at an appropriate time after the announcement of guidelines.

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