IFRS to enable greater disclosure by insurance firms: Pravin H Kutumbe, Member, IRDAI

15 Jan 2020

Three companies have got listed so far and they are trading at high valuations and there are long-term valuation gains seen, he said.

Understanding value creation in the insurance industry was a complex area and needed work on, he added.

Insurance companies in the country will have to make greater disclosures under the new International Financial Reporting Standards (IFRS), Pravin H Kutumbe, member, finance & investment, Irdai, has said.

He added that the insurance industry players will not just disclose numbers but also the logic and reasoning behind these numbers.

Kutumbe was speaking at the CD Deshmukh Memorial seminar organised by the National Insurance Academy here.

Kutumbe urged the academy to conduct more training programmes in corporate governance, enterprise risk management and risk-based supervision programmes.

In the last two decades, 24 insurance companies have come up in the country and most of them are poised for listing, and it is difficult to find how the value is created and under the new disclosure standards the value creation will be known, he pointed out.

Three companies have got listed so far and they are trading at high valuations and there are long-term valuation gains seen, he said. Understanding value creation in the insurance industry was a complex area and needed work on, he added.

“An area we are worried about is the stress coming into the industry and how to address that. This cannot be overlooked, considering what has happened in the financial services sector,” Kutumbe said.