- Regulator IRDAI has identified LIC, GIC and New India Assurance as domestic systemically important insurers (D-SIIs) and subsequently decided to subject them to enhanced regulatory supervision.
- 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.
- Therefore, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.
- After analysis of data”, IRDAI has identified Life Insurance Corporation of India; General Insurance Corporation of India; and The New India Assurance Co Ltd as D-SIIs for 2020-21.
- D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF).
- The parameters, as per the methodology, include the size of operations in terms of total revenue, including premium underwritten and the value of assets under management; and global activities across more than one jurisdiction.
- The regulator would identify D-SIIs on an annual basis and disclose the names of these insurers for public information.
