Insurance firms to trade in derivatives soon

New Delhi: Insurance companies will be allowed to invest their funds in swap and other derivative products. The Insurance Regulatory and Development Authority (IRDA) is considering making amendments to the investment regulations to pave way for such investments.

We are considering derivatives and swaps as additional methods of investments. We will announce amendments to the investment norms for the purpose, says IRDA chairman N Rangachary.

Rangachary says the first set of insurance brokers should be in operation by November 2002. According to the programme charted out by the IRDA, brokers regulation and those relating to corporate agencies are to be issued by the end of September 2002, after which the applications will be invited.

He says no changes are likely to be incorporated in the draft regulations on brokers that the IRDA had put up on its website for comments.