The Insurance Regulatory and Development Authority of India (IRDAI) has identified Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and New India Assurance as domestic systemically important insurers (D-SIIs). IRDAI has also subsequently decided to subject the three insurers to enhanced regulatory supervision.
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The Insurance Regulator and Development Authority of India (IRDAI) announced that the three insurers have also been asked to raise the level of corporate governance, identify all relevant risks and promote a sound risk management culture. D-SIIs refer to insurers of such size, market importance and domestic and global inter-connectedness whose distress or failure would cause a significant dislocation in the domestic financial system. D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF).
Important takeaways for all competitive exams:
- Chairman of Insurance Regulatory and Development Authority of India: Subhash C. Khuntia.