"IRDA is concerned over the underwriting skills of insurance companies to properly price the product as the companies don't seem to be in possession of adequate data," IRDA chairman C S Rao told reporters on the sidelines of a conference on 'New frontiers in Indian Insurance' in Mumbai.
"The Indian insurance market has some irregularities and so regulations are necessary. However, these regulations are not meant to be static and can be relaxed when there is enhanced mutual trust between the insurance companies and IRDA," Rao said.
The IRDA chairman asked the insurance companies to tap the 'potential' of the rural market and help in raising awareness about the concept of insurance, which would help in facilitating the growth of the Indian economy.
Speaking about the growth of the sector in India, Rao said IRDA had still not received an application for stand-alone health insurance.
IRDA has also set a cap of Rs 10,000 to Rs 50,000 on sum assured for micro insurance on life and non-life sectors, which can be provided by NGOs.