IRDAI, vide a press release dated May 16, 2023, has emphasized on promoting Surety Insurance Bonds market. In consideration of this,
- the solvency requirement applicable for such products has now been reduced to control level of 1.5 times from 1.875 previously prescribed, and
- the prevailing 30% exposure limit applicable on each contract underwritten by an insurer, has also been removed.
The current amendments are aimed to expand the Surety Insurance market by increasing the availability of such products and creating the opportunity for more Insurers to service the increasing demand.
Source category: IRDAI
Attachments
- /2023/200_Press_Release_on_Measures_towards_developing_Surety_Insurance_Bonds_market.pdf
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