The insurance sector has been waiting for the government to amend certain insurance laws before going for Initial Public Offer. J Harinarayan, Chairman of Insurance Regulatory & Development Authority (IRDA) said: "At the present moment, nobody can issue an IPO because the law has not yet been changed."

Speaking on the sidelines of 12th insurance summit organized by CII, Mr. Harinarayan called for the need to introduce uniform valuation method for companies on the basis of the Market Consistent Embedded Value (MCEV) principal. He also urged the strengthening of disclosure norms for effective valuation.

Reliance Life, formerly known as AMP Sanmar Life, is the only insurance company that has announced IPO after completing 10 years of operations after two years. Commenting on the agency system, IRDA chief said: "If you want to reach out in a country, which is as vast and as widespread with a difficult terrain, with varying degrees of communication capability and efficiency, I do not see how you can have a more efficient system as this (the agency system)."

Mr. Harinarayan advised the insurance sector to control rising management costs of life insurance companies and to have a re-look on commission system, which is not as adequate as it ought to be.