Insurance Regulatory and Development Authority (IRDAI) is considering the feasibility of issuing a composite business licence for new as well as existing insurance companies, sources informed CNBC-TV18.
The composite licence will facilitate open access for insurers in any line of business. Such insurers will be allowed to enter any segment -- life, health, general, sources said.
The insurance regulator has sought legal view from a top legal firm on composite license proposal. This issuance will require an amendment in the Insurance Act and Parliament's approval.
Currently, insurers need separate licences for life, general and standalone health insurance business.
Recently, the insurance regulator also proposed a 30 percent cap on the expenses of management for Indian general insurance companies.
In an “Exposure Draft” on expenses of management, IRDAI proposed cost control measures that can be transferred to policyholders by way of reduced premium.