CAMS subsidiary to facilitate issuance of e-insurance policies, shares rise over 7%

Shares of Computer Age Management Services (CAMS) rallied over 7% on Tuesday, April 2, after the company announced that its subsidiary will issue insurance policies through digital mode.

In a stock exchange filing, the leading mutual fund transfer agency said that as per Insurance Regulatory and Development Authority of India (IRDAI) mandate, its wholly-owned subsidiary CAMSREP will issue insurance policies by various insurers in electronic form with effect from April 1, 2024.

“CAMS Insurance Repository Services Limited, (CAMSREP) one of the wholly owned subsidiaries of the company is an IRDAI registered Insurance Repository and is facilitating the issuance of policies in the electronic mode,” the company informed the stock exchanges.

As per a notification issued by IRDAI, beginning April 1, 2024, investors are mandated to hold their insurance policies in electronic format. The notification stipulates that all insurers must establish a Board-approved policy for insurance policies issued in electronic form. Additionally, regardless of whether the proposal is received electronically or through other means, every insurer is obliged to issue insurance policies exclusively in electronic format.

CAMSREP, established in 2011, is a wholly owned subsidiary of CAMS and is recognised as an IRDAI registered insurance repository. As per the filing, CAMSREP manages 60 lakh e-Insurance accounts and oversees 72 lakh electronic policies across India. Additionally, the company is engaged in developing the Bima Central platform, aimed at providing a comprehensive industry solution for policyholder transactions through a single platform.

After the announcement, shares of CAMS gained as much as 7.78% to an intraday high of ₹3,225 apiece on the NSE. However, the stock pared some of its early gains and closed 6.48% higher at ₹3,186.2 apiece.