Important Points for IC 89 - Management Accounting Exam
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Regulations notified and series of circulars/guidelines issued by the Authority provide regulatory framework of disclosure norms for insurance sector in India.
In order to have uniformity among the insurers on disclosures and to clarify the doubts raised by certain insurers and other stakeholders, Authority provides the Guidelines on Periodic Disclosures: (IRDA Circular dated 9-4-2010) both for life and non-life.
Insurers are required to display information based on the yearly audited statement. Accordingly, the all formats as specified in the circular need to be disclosed on yearly basis for the last 5 years.
Single premium would not be considered for computation of conservation ratio.
Net Retention Ratio: It is reiterated that the denomination for the ratio will be Gross Direct Premium written in India and reinsurance accepted will not be considered for the purpose as the same has already been considered for computation of numerator i.e. Net premium
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