The Insurance Regulatory and Development Authority of India (IRDAI) has made progress in its transition to a risk-based capital framework for the insurance sector.
The regulator recently invited expressions of interest (EOI) from experts across the insurance industry to “provide necessary and essential advice and guidance” as the market shifts away from the current solvency capital regime. The consultants will help guide IRDAI as it moves toward a risk-based framework that is tailored for the Indian insurance industry, the EOI invitation said.
In September, IRDAI formed a 10-member steering committee to oversee the implementation of the risk-based capital regime.
IRDAI also created another two committees – one to plot a roadmap for risk-based capital approach in the insurance sector; and the other to formulate a risk-based capital approach and market consistent valuation of liabilities.
Both committees have already submitted their recommendations, The Hindu reported.
The committees gave a timeframe of March 2021 for the risk-based capital regime to be fully up and running.
Related stories:
Five re/insurers seeking to enter Indian market
Report calls for Indian insurance industry overhaul
Six firms in the race for takeover of troubled insurer
