Embedded Value for Indian Insurers

Indian insurance regulatory body, IRDA has signalled mandatory valuation of insurance companies on Embedded Value (EV). This could be applicable from the current financial year, i.e., 2010-11.

This new method of valuation is calculated as explained in my Classroom Series (refer Classroom 2 - EV).

Need for change:

• Broadbased and transparent disclosures
• Facilitate inter-firm comparisons
• Assist capital market accession for insurance companies

For details, please click on 'Deccan Herald'