India's insurance sector regulator, the Insurance Regulatory and Development Authority (IRDA) has said that it will prepare guidelines for the micro-insurance segment in the country in order to ensure its growth.

IRDA member, Sudhin Roy Chowdhury said that the regulator is working to release the guidelines for the sector, which is essential for ensuring financial inclusion in the country. He admitted that there are several issues in the industry that needs to be sorted out.

Mr. Chowdhury said that the industry players should look at creating new policies to address some of the issues and of the micro-insurance industry and the companies should also focus on consumer education about the products. He suggested that increased consumer awareness would help the companies penetrate the rural market.

"Insurance is a technical subject and educating the customer is important. We are asking companies to do that and we are also taking necessary efforts from our end," he said.

He also recommended looking at international markets for boosting growth in the industry. He cited the example of Allianz and said that more than half of its business comes from outside of its home country of Germany. Indian insurers can look at acquisition opportunities or expand their businesses directly in foreign markets, he suggested.