The Insurance Regulatory and Development Authority of India (Irdai) has urged large insurance companies, including Bajaj Allianz Life, HDFC Ergo General, SBI General, and Kotak Life, to present a clear roadmap for listing on the stock exchange within the next two to three years. The regulator met with the company promoters, including Sanjiv Bajaj, Uday Kotak, and Keki Mistry, to discuss the matter. According to sources, Irdai insisted on meeting with promoters, as they are ultimately responsible for setting the course for their companies. While there is no law specifying a time limit for listing, Irdai believes that listing will benefit policyholders and investors by subjecting them to stricter disclosure norms and market consultations.
Irdai’s goal is to encourage more insurance companies to follow the path of SBI Life, HDFC Life, and ICICI Prudential Life, which have already listed. The regulator has also been making changes to facilitate listing, such as relaxing share transfer rules to allow insurers to list shares on stock exchanges without prior approval. Additionally, a new draft proposal suggests allowing 100% foreign ownership, which could attract more foreign investment in the sector.
The insurance sector in India is highly competitive, with over 70 companies operating in the market. While some companies, such as Niva Bupa, have recently gone public, many others, including Bajaj Allianz, remain unlisted. Irdai’s push for listing is expected to bring more transparency and accountability to the sector, ultimately benefiting policyholders and investors. The regulator has given companies a deadline of two to three years to come up with a listing plan, and if companies fail to do so, Irdai will engage further to ensure compliance.