A panel advised against insurance company mergers with non-insurance entities due to risks to policyholders. Headed by Dinesh Khara, the committee submitted a report to IRDAI proposing amendments to the Insurance Act, including increasing FDI to 100% and introducing composite licences, potentially impacting ongoing merger plans.

The Indian Government’s Insurance Amendment Bill had proposed allowing such mergers, but the IRDAI may adopt the panel’s advice, affecting plans like Max Financial Services and Max Life Insurance. Panels of whole-time members have been formed to ensure regulatory compliance by insurers and intermediaries.

Reports suggest the government plans to place the health insurance claims portal under the Finance Ministry and IRDAI to address hospital overcharging issues. Findings show hospitals inflate treatment costs, particularly for patients with high insurance coverage. The move aims to tackle this issue effectively.

Read more at Yahoo Finance: IRDAI panel reportedly opposes insurance, non-insurance company mergers