Mumbai: Insurance regulator IRDAI chairman S C Khuntia said the life and general insurance subsidiaries of cash strapped mortgage lender DHFL are safe and have adequate solvency.
Troubled DHFL has two insurance subsidiaries - DHFL Pramerica Life insurance and DHFL General Insurance.
"The insurance companies (of DHFL) are safe. I don't see any problem in the insurance companies. We monitor the performance and their solvency is adequate and there is nothing to worry," Khuntia said on the sidelines of centenary year celebration of New India Assurance on Tuesday.
The home financier is facing liquidity crisis and has defaulted on debt repayments. The lenders to DHFL are in the process of finding out a resolution plan for the company.
Earlier while delivering his speech Khuntia said insurance players should use and analyse the data generated by the industry for designing and pricing products that can suit customers need.
He said data analytics is an area which insurance industry can take benefit to serve their customers.
"Insurance industry generate huge amount of data. If they analyse and make sense of this data then that can be used for pricing of product, gauging the need of customers and also to design products that customers require," Khuntia said while delivering the speech.
Noting that an early lead in this area can be useful, he said insurance companies need to be careful about data security and confidentiality.
Khuntia said IRDAI is going to use regulatory Sandbox to promote new, innovative products and processes.
The guidelines for Sandbox will soon be issued.
Talking about the challenges in the insurance industry, he said there is large protection gap in our country and it has to be bridged over a period of time.
The potential segments that insurance industry need to look at include health, agriculture, cyber insurance, insurance for small and medium sector and areas that are vulnerable to natural catastrophe he said.
"Climate change is going to increase the risk to human and property. How to mitigate the climate change risk is also an area the industry needs to focus on," Khuntia added.