IRDAI (“Authority”) issued a circular having reference number IRDAI/RBC/CIR/MISC/94/8/2025 dated August 14, 2025, titled ‘Quantitative Impact Study – 2’ (“Circular”). The key highlights of the Circular are as under:
- The First Quantitative Impact Study (QIS-1) was conducted by the Authority in 2023 for development and implementation of Risk Based Capital (RBC) Framework in Insurance Industry and to align the Indian Insurance Industry with global best practices.
- On the basis of suggestions received from insurers on QIS-1, the Authority decided to conduct Quantitative Impact Study (QIS 2) to further improve the framework.
- QIS shall be carried out by the Insurer as per the data of Technical Guidance document that is used for Actuarial Valuation as on March 31, 2025.
- The Technical Guidance document along with supplementary requirements for QIS 2 shall be informed to insurers separately.
- The Circular shall be applicable to all Life Insurers, General Insurers, Standalone Health Insurers, Reinsurers, Branches of Foreign Reinsurers and Lloyds’ India.
- The QIS – 2 shall act as a milestone in the Indian Insurance Industry for RBC regime.
- Insurers shall submit the result of the QIS 2 on or before October 15, 2025.
- It shall be noted by Insurer that Technical Guidance document shall only be referred of QIS 2 and not be interpreted as final decision of Authority.
- It shall be noted that the QIS 2 is an additional exercise in addition to the regulatory returns as mandated by current regime.
Source category: IRDAI
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