Khuntia flagged concerns on corporate governance at insurance companies and asked them to look into such issues to ensure fairness and transparency.
"I have asked insurers to be careful about related party transactions. It has to be at arm's length," he said. "We have seen what kind of turmoil has happened in the NBFC sector but I am confident that insurance industry will not have that kind of a problem. In fact, insurers are meant to provide stability in times of economic turmoil," he said.
"Earlier IL&FS was downgraded and now two more companies have been downgraded. Insurers with exposure to the debt instrument of these two firms will have to give a similar treatment as they treat their IL&FS accounts," he said.
Care downgraded Reliance Home Finance's long-term debt program from BBB+ to D and that Reliance Commercial Finance's to C from BBB+. Khuntia also asked insurers to focus more on growth and not on market share. "If your growth is high then you don't have to bother about market share. All of us should put our heads together so that the market grows."