IRDA BANS OUTSOURCING OF CORE ACTIVITIES BY INSURANCE FIRMS

Insurance Regulator (IRDA) has announced the do's & don'ts of outsourcing in the fast growing insurance industry. IRDA said that core activities including underwriting, product design and all actuarial functions and enterprise wide risk management, investment and related functions, fund accounting, including NAV calculations, admitting or repudiation of all claims, bank reconciliation, policyholder grievances redressal, approving advertisements, market conduct issues, compliance with AML, KYC cannot be outsourced by the insurers.