Making the way for more investment in the financial sector and insurance organization, insurance regulator IRDAI has climbed the exposure limit of insurance companies in such companies to 30 %.
The hike in the exposure limit comes in front of the mega IPO of Life Insurance Corporation (LIC). “The Authority in exercise of its powers given under the IRDAI (Investment) Regulations, 2016, allows all insurers to have exposure to financial and insurance exercises (according to section K of NIC classification) up to 30 per cent of investment resources. As needs be, the constraint of 25 per cent of investment assets referenced in IRDAI (Investment) Regulations, 2016 stands revised to a limit of 30 per cent of Investment Assets,” IRDAI said in a circular. The IRDAI move is expected to allow insurance companies to invest more funds in the LIC IPO, insurance officials explained.