Online BusinessIrda unveils disclosure guidelines
In a step towards initial public offer (IPO) guidelines for insurance companies, the Insurance Regulatory and Development Authority (Irda) has come out with final public disclosure norms, to be effective from March.
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“Several insurance companies will complete 10 years shortly and may be allowed by the regulator to go for IPOs. It is essential that investors are fully aware of financial performance, profile, financial position, risk exposure and managements of insurance companies. The data shall preferably be made available for at least five years,” Irda said.
The regulator has segregated company website and newspaper disclosures. It has asked insurance companies to publish balance sheets, profit & loss accounts, revenue accounts and key analytical ratios on a quarterly, half-yearly and yearly basis from March.
In addition, it has asked them to disclose segment-wise reports on their website on quarterly, half-yearly and yearly basis. In October last year, Irda had come out with a draft on disclosures for feedback.
The disclosures will remain the same for companies going to tap the market. For the sake of uniformity, Irda has standardised key analytical ratios for life and non-life insurance companies. However, insurers have been asked to put up disclosures for a minimum of five years.