The Actuarial Society of India that is giving final touches to the report on the valuations of life insurance companies in India has asked for a year's time to implement recommendations of the report, which is being submitted in the first week of October.

On its part, Insurance and Regulatory Development and Regulatory Authority (Irda) now says with companies waiting to get listed on bourses, there is no time to wait.

Irda had set up a committee headed by Dr R Kannan, member-actuary, Irda, to standardise the way an insurance company is valuated. According to the report, the companies will have to adopt the market consistent embedded value (MCEV). A market consistent embedded value will help value all the assets and liabilities of an insurance company on a mark to market basis.

Embedded value also takes into account the future business after making provisions for lapsations of policies, mortality charges and other expenses "In one of its suggestions on implementation of the report, the actuarial society has asked for a year's time for all insurers to put in place all the reporting procedures in place,"said a senior official from the society. The report will be submitted to the regulator in first week of October.

An actuarial society comprises of all the actuaries including the one representing the life and non-life insurance companies. Kannan said that as some companies are waiting for the valuation norms to be implemented for them to initiate their IPO proceedings.

"We cannot have the luxury to wait for such a long time. It (the report) has to be implemented immediately, "he said. According to him as most of the asset portfolio of a life insurer is Ulips (Around 70-75 percent), it is already mark to market and hence companies have to only evaluate their debt instruments based on the fair value changes.