IRDAI vide its press release dated August 10, 2023 has informed about it is actively working towards development and implementation of the Indian Risk-Based Capital (RBC) and it will further act as a catalyst for Insurers in optimizing capital utilization and ensuring efficient risk management.
IRDAI has initiated the First Quantitative Impact Study (QIS1), which would act as a major step towards transition to RBC. Further, it will evaluate the potential impact on the capital and overall solvency of the Insurers. IRDAI has released a ‘Technical Guidance’ document vide its Circular* for this purpose.
To further ensure progression, Insurers have been required to submit the outcomes of QIS1, which will be evaluated by IRDAI, which will help culminate in the tuning and evolution of RBC framework. This will help achieve heightened financial resilience as well as collective vision of inclusive insurance by 2047.
Reference:
*Bearing no. IRDAI/RBC/CIR/MM/158/8/2023 dated August 10, 2023.
Source category: IRDAI
Attachments
- /2023/243_Move_towards_Indian_Risk_Based_Capital_(Ind-RBC)_Framework.pdf
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