Insurers can't outsource work; M&A norms soon

New guidelines for mergers and acquisitions among non-life insurance companies are expected soon with the Insurance Regulatory Development Authority (Irda) initiating the process after receiving proposals for the same from two non-life insurance companies. Also, Irda came out with guidelines on outsourcing by all insurers, both in life and general, which will come into practice with immediate effect. Insurers will have to terminate all outsourcing especially core activities such as investment, underwriting and policy servicing to third-party companies. With regard to merger among non-life insurance companies, even though there s no specific provision in the enactment (Insurance Act), there is one ...

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