Risk-based capital framework for industry to benefit Irdai, says IMF

The Insurance Regulatory and Development Authority of India (Irdai) must develop a sound risk-based regulatory framework for the industry and modernise its supervision and regulations on investments of insurers and the products they offer, the International Monetary Fund (IMF) has recommended.

The IMF has appreciated Irdai’s moves over the past six to seven years, specifically in reforming insurance products, raising solvency levels, maintaining the independence of the regulator, cooperating with other regulators, and supervising corporate governance in insurance companies.

Both the sector and the regulation of insurance are more integrated with the larger financial system, the IMF report has said,