The Insurance Regulatory and Development Authority of India (IRDAI) has invited expression of interest (EOI) from consultants to assist it in implementation of risk-based capital framework for the insurance sector.
The call for consultants, who would “provide necessary and essential advice and guidance,” comes in the backdrop of IRDAI’s decision to shift from the existing solvency capital regime.
Risk monitoring
The proposed risk based supervisory framework is “for effective and efficient monitoring and evaluation of potential risks in the insurance sector.”
IRDAI had constituted two committees — on roadmap for risk-based capital approach in insurance sector; and on risk-based capital approach and market consistent valuation of liabilities.
Both committees had submitted their reports.
The latter had suggested a time-frame of March 2021 for implementation of the proposed RBC regime.
In September, the regulator had also constituted a 10-member steering committee to implement the RBC regime.
According to the EOI document, the regulator plans to move towards a RBC regime that is appropriate and tailored for the Indian insurance industry. It intends to take support of qualified consultants and invites proposals to carry out necessary analysis and India specific studies as needed for the project, develop and implement risk based capital framework.
