Home / Finance / Personal Finance / General Insurers should be allowed in surety bond biz: Irdai working group

General Insurers should be allowed in surety bond biz: Irdai working group

This is because surety bond insurance is yet to develop in India and risk exposure under this business is significant compared to other more mature lines of business

Irdai in talks with insurance firms hit by govt's mega PSB merger drive

Premium

The insurance regulator had set up a committee to examine the possibility of general insurance companies issuing surety bonds

Subrata Panda Mumbai

3 min read Last Updated : Oct 20 2020 | 1:23 AM IST

A working group of the insurance regulator, tasked with giving recommendations on Indian general insurers offering surety bonds, has said insurers should be allowed to enter into surety bond insurance business with solvency margin above a certain threshold.

This is because surety bond insurance is yet to develop in Indian market and the risk exposure under this business is significant compared to other lines of business which are reasonably mature in Indian insurance market.

“If the insurer's solvency ratio falls below the specified threshold limit at any point in time, the insurer shall stop writing new surety bond business until

Topics : IRDAI general insurers

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in