IRDAI has issued a list of Domestic Systemically Important Insurers (D-SIIs) on March 27, 2024. The D-SIIs are insurance firms crucial to the stability of the financial system due to their size, market significance, and global connections. Recognizing their pivotal role in ensuring continuous insurance services to the national economy,
1. Life Insurance Corporation of India,
2. General Insurance Corporation of India, and
3. New India Assurance Co. Ltd.
are identified as D-SIIs for the year 2023-24.
D-Slls are perceived as insurers that are ‘too big or too important to fail’ (TBTF). This perception and perceived expectation of government support may amplify risk-taking, reduce market discipline, create competitive distortions and increase the possibility of distress in the future. These considerations require that D-Slls be subjected to additional regulatory measures to deal with systemic risks and moral hazard issues.
Given the nature of their operations and the systemic importance of the D-Slls, these insurers are advised to carry forward their efforts on the following:
i. Raise the level of corporate governance
ii. Identify all relevant risks and promote a sound risk management framework and culture.
A copy of the Press Release is attached herewith for your reference.
Source category: IRDAI
Attachments
- /2024/375_List_of_Domestic_Systemically_Important_Insurers_(D-Slls)_for_2023-24.pdf
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