Insurance Regulatory and Development Authority (IRDA) is all set to increase 'Terror Insurance Pool' set up by the insurance industry. The chairman of IRDA, J. Hari Narayan said that Rs. 750-crore corpus of the 'Terror Insurance Pool' is felt insufficient as terror activities are increasing day by day and damage caused by such activities is difficult to full fill due to large scale losses.

Mr. Narayan was speaking at the conference on insurance organized by the Federation of Indian Chambers of Commerce and Industry (FICCI). He said claims are growing for non-life insurance sectors and even small establishments wants terror insurance cover after recent terror attack in Mumbai. Rate of premium might change depending upon the evolution of new products after consultations with insurance companies.

Government is also working on the appropriate guidelines for M&A in insurance sector. The country has 21 life insurance companies and 20 non-life insurance companies and there is a stern need of a framework for mergers and acquisitions.

IRDA chairman expressed concerns over asset-liability mismatch and said that the issue would be take in the notice of Finance Ministry very soon.