The Insurance Regulatory and Development Authority (IRDA) confirmed that the companies which are functioning for 10 and more years will be allowed to raise money from initial public offer (IPO).

Insurance companies like ICICI Prudential, SBI Life, HDFC Life Insurance and Reliance Life have approached IRDA to prove them with IPO facility. However, Reliance Life doesn’t come in 10 year category. Recently, 24 life insurance companies have been approved by IRDA.

Life insurance companies are to provide financial statements for a period of last five years and also the reports of cross-selling, gross premium, operating expenses ratio, liability of future policy benefits, investment yield and manner of arriving at unrealized gain/loss. Also, the summary of disclosure of financial statements, insurance industry and details of the insurers and issue are to be provided.

The risk factor stated in the documents should include major risk coming out of insurance risk, with market, credit, liquidity and operational risks.

According to IRDA’s regulations, "Only after obtaining the consent of the IRDA to make an application, the concerned insurance company may proceed with complying with various requirements as may be laid down by the SEBI under the ICDR Regulations, 2009". Also, IRDA has asked for the suggestions from the shareholders about these regulations by 30th June.