By IANS,
Chennai : India’s insurance watchdog Friday offered life insurers, and more particularly the private life insurers, a mega New Year gift by easing solvency norms for the third time in recent days.
Solvency margin is the excess of assets that a life insurer has to maintain over its liabilities.
With capital becoming scarce, the latest move by the Insurance Regulatory and Development Authority (IRDA) will help insurers to conserve precious cash.
“Given the macro-economic environment and risk parameters, there is a need to utilise the capital optimally with affordable cost so that insurance penetration increases,” the regulator said in its order.
This time, IRDA has eased the solvency norms for unit-linked insurance policies (Ulip).
It was only last month that the regulator eased the norms for non-linked insurance products, while solvency norms were relaxed for pure term insurance policies in March.