Insurance regulator IRDAI bats for risk-based supervision, trials to begin from July

Hyderabad, June 27, 2023 

Insurance regulator IRDAI will be rolling out the first phase of pilot projects associated with a Risk Based Supervision (RBS) framework from July.

The move to RBS will be a shift towards adopting global best practices for supervision with a focus on proportionality, materiality and relies on holistic analysis of the activities of regulated entity from a risk perspective, the regulator said on the proposed framework for which it has collaborated with Toronto Centre (TC).

A not-for profit organisation, TC has been working to promote strong supervision in order to enhance financial stability, crisis preparedness and consumer protection.

Elaborating on the plans for RBS, the regulator said it has been working towards developing and implementing the framework, for insurance sector in India, with a view to promote a ‘Principle based Regulatory regime’, foster ease-of-doing business and encourage proactive risk identification and management. It has been engaging with various stakeholders over the past few months for a robust development and smooth implementation of RBS, IRDAI said.

“After recent deliberations with TC, the first phase of pilots for RBS are scheduled to commence from July, 2023,” it said on Tuesday.

[The Hindu]