Indian Insurers Ask Regulator to Revamp Bond Valuation Rules

Indian insurers have asked their regulator to revamp bond valuation norms, according to people familiar with the matter, a move that could encourage greater participation in the corporate debt market.

Insurance companies are seeking a shift to a method that values bonds individually, for example differentiating between debt issued by state-run firms and private companies, the people said, asking not to be named as the talks are private. The current approach assigns similar valuations to bonds with the same rating, they added.

The request was made in recent discussions with the Insurance Regulatory & Development Authority of India, or IRDAI, ...